Chipmakers see modest export growth in 2025

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May 4, 2025 | 12:00am

MANILA, Philippines — The country’s electronics sector is projecting a modest export growth of one to two percent this year, following two years of contraction.

Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI) president Dan Lachica told reporters on the sidelines of the Aboitiz InfraCapital Industrial Summit the group is eyeing a one to two percent growth in electronic exports this year.

“We came from two back-to-back contractions, eight percent in 2023, six percent in 2024. So, we’re treading carefully,” he said.

According to the SEIPI, Philippine exports of electronic products declined to $42.74 billion in 2024 from $45.65 billion in 2023.

While SEIPI expects investments to come into the sector, Lachica said some may take time to translate into the manufacture of exports.

“It takes a year or two to get the investment into production mode. So, you won’t be able to see it (right away). But the other thing is, you’re fueling the growth engine with this investment, which will eventually generate the supply chain,” he said.

As the United States  has imposed reciprocal tariffs on trade partners including the Philippines, Lachica said that SEIPI is hopeful that the levy could be brought down to zero for Philippine exports.

For the electronic sector’s exports, he said integrated circuits are exempted from the reciprocal tariffs.

“We hope it stays that way,” he said.

Lachica said electronic manufacturing services, which includes providing solutions for the assembly of consumer electronics and office products, however, are exposed to the reciprocal tariffs.

Prior to the 90-day pause on the reciprocal tariffs and lowering of the levy to 10 percent for most countries, the US imposed a 17-percent tariff on goods coming from the Philippines.

While Philippine exports were imposed a 17-percent tariff, the rate is the second lowest in Southeast Asia.

SEIPI hopes that by attracting investments, the Philippines can take advantage of the opportunities and benefits the reciprocal tariffs may bring.

Lachica said SEIPI is also hopeful the US would resume the program supporting semiconductor chip assembly, testing and packaging operations in countries including the Philippines within the year.

The program is being undertaken by Arizona State University, which was awarded $13.8 million under the International Technology Security and Innovation Fund provided under the US’ Creating Helpful Incentives to Produce Semiconductors or CHIPS and Science Act.

US President Donald Trump has set up a new entity within the Commerce Department to manage the CHIPS and Science Act to focus on negotiating better deals.

Lachica also said that SEIPI is still pushing for the development of a wafer fabrication facility, which turns wafers into integrated circuits, in the country.

He said this would enable the country’s electronics sector, which is focused on the backend stages of production like assembly, packaging and testing, to move up the value chain.