THE Semiconductor and Electronics Industries in the Philippines Foundations, Inc. (SEIPI) said it set its 2019 export growth target at 3%, which is higher than its assumption for growth in the global industry of 2% and slightly higher than the industry’s growth in 2018.
In a phone interview on Monday, SEIPI President Danilo C. Lachica said the “3% approved by the Board is higher than the 2% global outlook” for the semiconductor industry.
The group is counting on the technological upgrade cycle in various markets, such as automotive, consumer electronics and office equipment.
“The bulk of the exports is semiconductors so that’s where (we’re)seeing the growth,” Mr. Lachica added.
The group also said 2018 was still a “record-breaker” that outstripped the midyear estimate issued by the Philippine Statistics Authority (PSA).
The country’s electronic exports grew in 2018, although at a much slower pace than the at least 11% annual growth recorded in 2017 and below industry’s full-year target.
Data from the PSA showed that 2018 electronics shipments totaled $37.57 billion, up 2.83%.
“Nonetheless, this is the second straight year for record electronics exports,” SEIPI said in a report on Monday.
Electronics accounted for around 57.2% of 2018 total merchandise exports, which fell 1.8% to $67.488 billion. Economists have attributed the weak exports mainly to weak global demand as a result of trade tensions between the United States and China.
Of the 2018 electronics exports, 73.76% consisted of semiconductor components/devices worth $27.71 billion.
The next biggest segment was electronic data processing with $6.25 billion worth of exports and the “other” electronics segment which accounted for $2.87 billion.
These were followed by office equipment at $817.11 million; telecommunication $591.16 million; consumer electronics $588.96 million;communication radar $560.44 million; automotive electronics $113.07 million; and medical/industrial instrumentation $56.09 million.
Hong Kong was the industry’s biggest market in 2018, accounting for 21.15% of electronics exports. Next were the United States and China at 13.61% and 13.17% respectively. — Janina C. Lim