Electronics investment surge seen

THE Philippine export sector sees semiconductor and electronics investments surging amid expectations of a quick recovery in demand.Senen Perlada, Export Development Council executive director, said the sector may enjoy a “V-shaped” recovery, helping jack up the country’s total merchandise exports by about a tenth this year.

Arthur Young, Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) chairman said the group’s 15 to 20-percent growth forecast for this year is “conservative,” as shipments may expand faster on strong global demand for consumer and business electronics products.

Young, who is also president of publicly listed Integrated Microelectronics Inc. said investments also are expected to surge as well.

“We still don’t have a target amount for investments, but we are sure that we will exceed the amount [of investments generated by the industry] last year. The market is strong, and companies are expanding and investing now,” he said.

SEIPI had said that semiconductor and electronics investments last year reached $480 million, or about P22 billion, up by a fifth year-on-year.

Earlier, Japanese firm Nidec Corp., a global manufacturer of motors, electronic and optical components and machinery, announced that it will invest P13 billion to almost double the output of its four existing facilities in the Philippines.

Ernesto Santiago, SEIPI president, said the group has received information that even more investments would come in.

The Manila Economic and Cultural Office also had said that a number of Taiwanese electronics firms are looking to expand their Philippine presence.

The Bangko Sentral ng Pilipinas (BSP) earlier said that foreign direct investments in 2009 rose by 26.2 percent year-on-year despite the global crisis, with the $1.9-billion worth of inflows higher than the central bank’s forecast of $1.5 billion for the year.

For this year, the BSP expects inflows of $1.8 billion.

Shipments of semiconductor and electronics declined sharply beginning late 2008, as orders from traditional export markets slowed down because of the global economic crisis.

Government data showed that the country’s merchandise exports in 2009 suffered its worst contraction on record, with the sector shrinking 22 percent year on year.

But towards the end of last year, semiconductor and electronics exports started to bounce back.

In January, Philippine merchandise exports rose at their fastest pace in 15 years because of strong sales of semiconductors and electronics, which comprise the bulk of the country’s exports.

The National Statistics Office said dollar receipts grew by 42.5 percent to $3.58 billion in January from $2.51 billion in the same month last year. –BEN ARNOLD O. DE VERA Reporter, Manila TImes