The Semiconductors and Electronics Industry of the Philippines Inc. expects a slower growth of 5 percent for both exports and revenues in 2023 on lackluster demand from global clients.
SEIPI president Dan Lachica said the industry faced headwinds on the global front as companies tried to deal with issues such as the inability to keep up with the demand for automotive semiconductor and electronic chips.
The new guidance is expected to raise exports value to $51.54 billion in 2023.
Philippine electronics and semiconductor exports in 2022 fell short from the expected 10-percent growth forecast by SEIPI. While targets were not met, the sector posted 6.8-percent growth to $49.09 billion from $45.93 billion in 2021.
Industry data showed the country’s total electronics exports in 2021 increased 12.9 percent to $45.92 billion from $40.67 billion in 2020.
Electronic exports remain the biggest contributor to the country’s total exports.
Telecommunications electronics grew 31.39 percent to $953.29 million from $725.53 million, followed by control and instrumentation with 16.48-percent increase and semiconductor components/devices with 13.64 percent.
Exports of office equipment declined 20.34 percent to $504.42 million from $633.17 million. Electronic data processing posted 17.37-percent growth, while consumer electronics registered 7.10-percent decline.
Automotive electronics fell 5.67 percent; medical/industrial instrumentation by 4.67 percent; and communication/radar electronics, 4.64 percent..
The top five export destinations of Philippine electronics and semiconductor exports in December were China at 16.97 percent; Hong Kong, 14.10 percent; US, 12.07 percent; Singapore, 8 percent; and Japan, 6.10 percent.
Rounding up the top ten destinations were Germany, Taiwan, Vietnam, South Korea and Thailand.