THE Philippines’ biggest dollar-earning industry has jacked up its growth projection for the year as the sector enjoys continuous investment inflows. Arthur Young, Semiconductor and Electronics Industry in the Philippines Inc. (SEIPI) chairman, said the group’s board on Friday raised its growth forecast for this year to between 25 percent and 30 percent.
SEIPI initially projected the industry this year to grow by a tenth, and later adjusted its forecast to 20 percent year-on-year.
Young said they underestimated the sector’s potential growth for this year.
“We now have a better visibility of how the market will look like in the coming months, and we’ve seen that the demand for electronics will remain strong,” he said, adding that the second half of a year historically brings in better sales than the first six months.
He had said that the strong global demand for consumer electronic goods would sustain the growth of Philippine semiconductors and electronics exports.
Young said an increase of between 28 percent and 30 percent in exports this year would match levels posted in 2008.
The industry’s shipments abroad last year declined by about a fifth because of the global recession.
Latest government data shows that shipments of electronics products in the first four months of this year reached $8.704 billion, up 45.08 percent year-on-year.
Electronics accounted for about 58 percent of the country’s merchandise trade receipts for the four-month period.
Young said this is a “good time” to invest in the Philippine semiconductor and electronics manufacturing industry.
Two recently announced commitments nearly equal the full-year investments infused into the industry last year.
Nidec Corp., a Japanese manufacturer of motors, electronic and optical components, and machinery, in March said that it will invest an additional P13 billion to almost double the output of its four existing facilities in the Philippines.
State-run Clark Development Corp. last week said that Korean-led Phoenix Semiconductor Philippines Corp. is investing $135 million, or about P6.2 billion, for the initial phase of a high value semiconductor manufacturing plant at Clark Freeport Zone.
Total investments in the sector last year amounted $484.16 million, or about P22.3 billion. –BEN ARNOLD O. DE VERA REPORTER, Manila Times
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