By Jenina P. Ibañez, Reporter

THE electronics industry reported continued disruption in their import supply chains, which is hindering their attempts to ramp up production to address pent-up demand as lockdown restrictions ease.

Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) President Danilo C. Lachica said in a phone interview Monday that the number of employees returning to their facilities has increased, but the industry continues to encounter problems with irregular air and sea shipments for their supplies.

“It’s a significant disruption because how can you plan normal work when the materials are not readily available?” he said.

“On one hand, there’s a lot of demand but on the other hand, the supply chain and the manpower predictability are not stable.”

Mr. Lachica said that demand for some consumer products like mobile phones fell slightly, offset by demand in other areas. He added that he is not yet able to estimate possible product demand for the rest of the year.

Multinational companies have moved some manufacturing to other countries while facilities in the Philippines were on minimal operations.

“I hope that we can recover once supply chain and manpower are normalized,” he said.

He reiterated that the electronics industry needs an additional five years to recover from the pandemic before the four to seven-year sunset provision in the new Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), which is designed to accelerate the reduction of corporate income taxes while rationalizing tax incentives.