Electronics sector vital to economic recovery, digitalization

MANILA – The electronics industry has continued to support the country’s economy amid the coronavirus diseases 2019 (Covid-19) pandemic, and is seen to play a vital role in recovery and digital transformation.

At the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) general membership meeting Friday, Department of Trade and Industry (DTI) Secretary Ramon Lopez said the electronics sector has continued being a key driver and “solid cornerstone” of the Philippine manufacturing despite the ongoing global health and economic crisis.

SEIPI president Dan Lachica, in the same event, reported that the sector grew by 8.9 percent in the first quarter of the year compared to last year, with export revenues amounting to USD10.72 billion.

The industry also accounted for 61 percent of the country’s total exports in the said period.

Lopez recalled that despite community quarantine measures, electronics manufacturing continued to operate at 100 percent capacity even under enhanced community quarantine (ECQ).

He added that this made the industry record a negative growth only during the second quarter of 2020, the height of community lockdowns.

He said the electronics sector likewise supported the overall export growth of the country in January to March 2021 period at 31.6 percent.

“It is evident that the quick bounce-back of the electronics sector cushioned the impact of the pandemic to our exports sector and is now driving its further growth,” the trade chief said.

Aside from helping in economic recovery, the electronics sector is also crucial in the digitalization of industries, added Lopez.

“As we adjust to the new normal, the exemplary performance of the electronics sector in the midst of a crisis is the ability, resilience, and agility that we need to cascade to other industries, especially as our country rides the wave of digital transformation. This digital transformation will fundamentally change the way we live, work, and do business,” he said.

Meanwhile, Lachica said SEIPI is implementing programs to further support the growth of industry and also adapt to the new normal.

Lachica said through the Product and Technology Holistic Strategy (PATHS), this has identified the niche products and technologies with the highest prospects for growth where the Philippines’ electronics industry can compete.

The industry group is also active in participating in DTI’s Inclusive Innovation Industrial Strategy, embracing Industry 4.0 strategies to make the industry become more competitive, he added.

SEIPI has also partnered with Philippine Business for Education in establishing Sector Skill Councils that aim to address the mismatch of jobs and skills in the industry.