The Philippine electronics industry is forecasting a 5-percent exports growth in 2026, led by rising global demand for components used in artificial intelligence, data centers and telecommunications, according to the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI).
SEIPI president Dan Lachica said the industry board settled on 5-percent growth as the most realistic outlook for 2026, slightly below the 5 percent to 7 percent estimate discussed in a recent meeting. Lachica said the uptick follows a flat performance this year and that signs of a mild rebound are already emerging.
While the Philippines does not produce advanced AI chips, it manufactures hundreds of crucial mid-range and supporting components required for the entire system, which continue to anchor export orders.
The anticipated growth will be largely fueled by the demand for devices supporting AI, data centers, telecommunications and power technologies.
Lachica downplayed concerns that Philippine export gains were an artificial boost from the US tariff situation, describing the increase as “front-loading” rather than a structural shift.
He said that Philippine electronics currently enter the US at zero tariff, although this could be jeopardized by the outcome of a legal challenge before the US Supreme Court.
“If they remove the zero tariff, then we are at risk,” he warned.
Despite the cautious optimism for 2026, Lachica reiterated that the country’s long-term position remains fragile without a clear semiconductor ecosystem strategy.
He warned that without urgent government action on capability building, supply chain development and high-technology manufacturing, the Philippines may struggle to sustain its export leadership.
