THE electronics industry said it does not expect a significant impact from a new 10% Indian tariff on smartphone components.
Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) President Danilo C. Lachica said India, the world’s second-largest smartphone market, is not among the top 10 destinations for Philippine electronics exports.
“Effect is not significant,” Mr. Lachica said in a mobile message, when asked about India’s imposition of a 10% levy on imported printed circuit boards used in smartphones.
India hopes to cut its reliance on imported electronic products as it prepares its own electronics industry to meet domestic demand.
The Philippines’ top markets for its electronics products are Hong Kong, China, Japan, Singapore and the United States.
The Philippine Statistics Authority estimates 2017 export sales from electronics products at $32.704 billion, up 11.2% and representing over half of total merchandise export sales.
This year, SEIPI is targeting 6%-8% growth in electronics shipments. Mr. Lachica said that the industry is on track to meet this target amid increasing demand for electronic parts.
He said SEIPI has submitted a draft of its Product and Technology Holistic Strategy (PATHS) and road map to the Department of Science and Technology. The proposed five-year plan determines the products which the industry plans to focus on to ensure it retains a competitive niche in the global market.
Under PATHS, investment in the electronics sector is projected at $1.5 billion in 2020; $3 billion in 2025; and $5 billion in 2030, with export sales amounting to $40 billion by 2025. — Janina C. Lim