The Philippine semiconductors and electronics industry is the largest contributor to the country's manufacturing sector. In 2013, the industry accounted for 41% of total exports, brought in US$ 918 million-worth of foreign and domestic investments, and employed 2.2 million workers. The potential for the industry remains high, as member firms intend to move to higher value-added manufacturing to meet global demand. These companies plan to improve current production capacities, to expand current research and development and design capabilities, and to further develop the labor force over the next several years.
The industry is working to drive up the semiconductor and electronics manufacturing index of the country by identifying customers' needs, understand suppliers' baseline, develop relevant capabilities, match industry supply and demand, and conduct periodic assessment of its performance. In addition, the industry recommends that the government continue with its scholarship program for operators and technicians, improving the country's business environment, conducting R&D capability development, and aggressively promoting local industries and SMEs through investment missions abroad.
The Philippine semiconductors and electronics industry specializes in manufacturing assembly, testing, packaging and distribution. Among the firms investing in the country include Texas Instruments, Toshiba Information Equipment, Inc., Amkor, HGST (A Western Digital Company), and Fairchild Semiconductor (Phil.), Inc., Analog Devices, ON Semiconductor, Cypress, Maxim, NXP, STMicroelectronics, and IMI Electronics.
As of first-quarter 2013, there are over 424 electronics firms in the Philippines. Majority of electronic firms in major hubs such as those in Baguio, Calabarzon, Cebu, Clark, and Metro Manila are declared as special economic zones. About 73% of the total number of Philippine electronics companies provide SMS services and 27% provide EMS capabilities.
The Semiconductors and Electronics Industries in the Philippines, Inc. (SEIPI) aims to strengthen the Philippines as a globally competitive business environment for semiconductor and electronics technology. It continues to enhance and promote the Philippines’ competitive advantages and growth opportunities in electronics manufacturing and technology business through Training, Research and Development, Advocacy, Information, and Networking and Services (TRAINS). The association regularly engages local suppliers, encourages member firms to participate in trade fairs, facilitates greater collaboration among large-scale, medium-scale, and small-scale companies.
In support of the industry, the Department of Science and Technology’s (DOST) established the Advanced Device and Materials Testing Laboratory (ADMATEL) to improve the industry’s current capabilities. The facility contains equipment for failure analysis and materials characterization, thereby lessening production costs and lead time for testing products abroad.
Moreover, the Philippine government and SEIPI are working to further develop the industry’s labor force, including strengthening industry-academe linkages through the promotion of more apprenticeship and immersion programs among firms and training schools.
Electronics exports 2008-2013, by electronics sub-group (in US$ million)
|Control & instrumentation||135||94||72||94||420||248|
|Electronic data processing||5,214||4,932||5,485||4,242||3,037||4,497|
Electronics imports 2008-2013, by electronics sub-group (in US$ million)
|Control & instrumentation||134||109||130||139||133||157|
|Electronic data processing||2,718||2,195||2,386||1,749||1,892||1,454|
The production and manufacture of electronics products for export are among the export activities listed in the IPP, specifically the production/manufacture of non-traditional export products and with export requirement of at least 50% of its output, if Filipino-owned, or at least 70%, if foreign-owned.
The certification of semiconductor products is guided by the Philippine Standard (PS) Quality and/or Safety Certification Mark Scheme.
The Advanced Device and Materials Testing Laboratory (ADMATEL) is a DOST national testing facility equipped with state-of-the-art analytical equipment for Failure Analysis and Materials Characterization. The ADMATEL facility is based on the standards acceptable for a scientific laboratory to accommodate sophisticated equipment, such as Focused Ion Beam – Field Emission Scanning Electron Microscope (FIB-FESEM), Auger Electron Spectroscope (AES), and Time-of-Flight Secondary Ion Mass Spectrometer (TOF-SIMS).
The Php 378 million-facility was established to reinforce and upgrade the capabilities of the local electronics sector and its related industries. It reduces the delays and costs of having products tested abroad.
ADMATEL has already catered to 44 clients from the electronics and related sectors. It is currently being managed by PCIEERD, with SEIPI’s guidance.
The Electronics and Product Development Center (EPDC) is a planned facility to strengthen the local electronics and semiconductors industry by enabling local firms to conduct R&D, design, and prototyping of products. It will offer various electromagnetic compatibility services (such as electromagnetic interference pre-compliance testing and harmonics and flicker tests); provide design, prototyping, and testing capabilities for printed circuit boards; provide electronic product prototyping for 3D enclosure design, 3D scanning, and enclosure design simulation, and enclosure prototyping using 3D printer, restriction of hazardous substances (RoHS) analysis, and thermal imaging.
The electronics industry Technical Working Group (TWG) holds meetings inviting stakeholders both from the public and private sectors to discuss updates and current activities, as well as address challenges being faced by the industry.
Among its activities are the following:
14th Flr., Tower 2, Insular Life Corporate Centre,
Filinvest Corporate City, Alabang, Muntinlupa City, 1781 Philippines
Tel. No: (632) 236-5555 to 58
Telefax: (632) 236-5561
Industry and Investments Building,
385 Senator Gil Puyat Ave,
Makati City Philippines
Tel. No.: (632) 890-9329
Email: [email protected]