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Electronics, Optical & Electrical Equipment
The Philippine semiconductor and electronics industry remains the top contributor to the Philippine economy. The industry specializes in manufacturing assembly, testing, packaging and distribution. About 73% of the total number of Philippine electronics companies provide SMS services and 27% provide EMS capabilities.
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Supplies 10% of the world’s semiconductors and electronics
The Philippines supplies about 10% of the world's semiconductor manufacturing services, including mobile phone chips and microprocessors.
Source: Reuters
Top contributor to PH Economy
The Philippine semiconductor and electronics industry is the top contributor to the Philippine economy contributing 62% of Philippine total exports.
Source: DTI
3.2 Million employed workers
The industry altogether employs an estimated 3.2 million direct and indirect workers.
Source: BOI
The Philippine semiconductor and electronics industry remains the top contributor to the Philippine economy. [120] The industry specializes in manufacturing assembly, testing, packaging and distribution. [121]
Majority of the semiconductor and electronics firms in the country are located around Metro Manila, the CALABARZON region (Cavite, Laguna, Batangas, Rizal, and Quezon provinces), Northern and Central Luzon, and Cebu, and have capabilities ranging from IC packaging, PCB assembly, and full product assembly. [122]
About 73% of the total number of Philippine electronics companies provide SMS services and 27% provide EMS capabilities. [121] The industry covers semiconductors/components and devices (Pentium III, DSPs, Integrated Circuits, Transistors, Diodes, Resistors, Coils, Capacitors, Transformers, Lead Frames, PCB); electronic data processing (EDP) equipments (computers, peripheral storage and input/output devices with products such as laptops, desktop PCs, printers, computer monitors, drives: hard disk, optical, ZIP, CD-ROM); office equipments (photocopiers, fax machines, and electronic calculators); telecommunication equipments (telephone sets, modems, copper communication cables, and fiber optic cables); communications and radar (cellular phones, pagers, closed circuit television (CCTV), CB transceivers, radar detectors, marine and land mobile radios); control and instrumentation (test and measuring instruments such as oscilloscopes, signal generators, ammeters, voltmeters, ohmmeters, cross talk meters, etc.); medical and iIndustrial instrumentation (X-ray and other medical applications, railway signaling, security and fire alarms); automotive electronics (car stereos, anti-skid brake systems (ABS), and car body electronics); consumer electronics (TV sets, VCD players, electronic games, radio cassette players and karaoke machines); and solar/photovoltaic. [123]
Opportunities and
advantages
The value of Philippine electronics products exports in 2021 reached $42.49 million, higher by 11.9% from the previous year, according to trade data released by the Philippine Statistics Authority (PSA). Semiconductors accounted for the bulk of electronics exports at $31.15 million, followed by electronic data processing at $7.35 million, and consumer electronics at $1.05 million. [124] The industry is typically made up of export-oriented firms, accounting for about 62% of Philippine total exports and employs an estimated 3.2 million workers. [120]
In terms of workforce, the Filipino talent pool is highly competitive, English-proficient, adept at technology, and has short learning curves. [122]
There are several homegrown electronics manufacturers in the country, whose competitiveness and capabilities are considerably at par with their peers in the region. For example, when it comes to full turnkey operations, the country has among the best manufacturers in the industry. Local companies can also provide consigned PCB assembly services, and even dedicated assembly lines. [122] Moreover, 18.79% of the country’s electronics exports went to Hong Kong, followed by USA (13.61%), China (11.41%), Singapore (9.07%) and Japan (7.80%), which complete the top five export destinations of the electronics sector. [125]
The Philippines is well positioned to support high-tech electronics manufacturing companies’ growth in Southeast Asia. The Philippines is home to more than 920 semiconductor and electronics companies and is a successful hub for Semiconductor Manufacturing Services (EMS) and Electronics Manufacturing Services (SMS). It is also becoming an emerging player in IC design, with a growing base of competitive IC design companies. The pandemic, likewise, led to the fast development of the Philippine medical devices industry. [126]
Emerging technologies will provide more opportunities and investments for the sector, such as the Metaverse, automotive artificial intelligence, advanced driver assistance systems, and augmented reality. [124]
Emphasis on high quality products and services and the drive towards higher productivity among workers and production facilities is very important in the industry as more and more of these firms adopt the best-known methods in manufacturing such as JIT, TQM, 5S, etc. In addition, most Philippine electronics firms are ISO-certified and have in-house training capabilities making it more attractive to foreign investors to expand or relocate their businesses here. [123]
The Philippines provides access to key markets through bilateral and regional free trade agreements with Japan, the European Free Trade Association, ASEAN and ASEAN’s FTA partners including China, Australia, New Zealand, India, South Korea and Japan. The Philippines is also a recipient of the generalized system of preferences representing tariff privileges with countries such as the US, Canada, the EU, UK, and Russia. The country is also accelerating discussions with India, currently not a member of the Regional Comprehensive Economic Partnership (RCEP), to commence negotiations on a preferential trade agreement. This presents vast opportunities to lay foundations for American businesses expansion and diversification plans into the region. The Philippines certainly fits the bill as the next complimentary investment destination since it provides preferential trade agreements with global strategic partners, being part of the support industries for global manufacturing. [126]
New Product Opportunities
Electrical boards
Insulating fittings for electrical machines
Video recording apparatus
Electric sound or visual signaling apparatus
Telephones
Vacuum cleaners
Featured Companies
Texas Instruments Philippines Texas Instruments (TI) has operated in the Philippines for more than 40 years, built its first assembly and test (A/T) site in Baguio City in 1979 and added a new A/T site in 2009 in Pampanga. [127]
Texas Instruments Philippines is part of the U.S.-based Texas Instruments Inc., the world's biggest maker of mobile phone chips. TI Philippines is the biggest semiconductor firm in the Philippines and specializes in the final assembly and test operations of silicon integrated circuit chips. [128]
The facility in Pampanga is a ground-breaking assembly and delivery production unit that produces analogue and embedded processing chips to its technology oriented manufacturers and clients across the industrial, automotive, personal electronics, communications equipment and enterprise systems markets. The facility has been awarded a Leadership in Energy and Environmental Design (LEED®) Gold certification. [128] This was a first for a company in the Philippines. As the Philippines’ top exporter, the company employs around 3,000 employees that includes engineers who work on our products, processes and equipment; technicians and operators assembling and testing semiconductors on factory floors; and various technical and business specialists supporting local operations. [127]
Analog Devices Philippines Inc. Analog Devices Inc. (ADI) is a world leader in the design, manufacture, and marketing of a broad portfolio of high-performance analog, mixed-signal, and digital signal processing (DSP) integrated circuits (ICs) used in virtually all types of electronic equipment. Located in Gateway Business Park, Javalera, Gen. Trias, Cavite, ADI has been operating in the Philippines since 1982, focusing on solving engineering challenges associated with signal processing in electronic equipment. Their products find applications in data converters, amplifiers, power radio frequency (RF), and microwaves. Used by over 100,000 customers worldwide, their signal processing products play a fundamental role in converting, conditioning, and processing real-world phenomena such as temperature, pressure, sound, light, speed, and motion into electrical signals to be used in a wide array of electronic devices which serve the instrumentation, aerospace and defense, building technology, consumer, communications, healthcare, energy, security and surveillance, and automotive industries. Currently, the company produces a wide range of innovative products—including data converters, amplifiers and linear products, RFICs, power management products, sensors based on microelectromechanical systems (MEMS) technology and other sensors, and processing products, including DSP and other processors—that are designed to meet the needs of our broad base of customers. The company operates manufacturing centers in the US, the Philippines, Ireland, Singapore, and Malaysia. With business operations spanning across the Americas, Europe, Africa, and Asia-Pacific. [129] [130]
Integrated Microelectronics, Inc. Integrated Micro-Electronics inc. (IMI) is among the leading global technology and manufacturing solutions companies in the world specializing in highly reliable and quality electronics for long product life cycle segments in the automotive, industrial, medical, power electronics, communications, automobiles, motorcycles, and aerospace markets. [131]
It was established in 1980 as a joint venture between Ayala Corporation and Resins, Inc. IMI is part of the manufacturing portfolio of AC Industrials, Inc., and a wholly-owned subsidiary of Ayala Corporation. It is ranked among the top 20 EMS providers in the world by the Manufacturing Market Insider, based on 2019 revenues. In the automotive market, it is now the 5th largest EMS provider in the world according to New Venture Research. [132] The company manufactures printed circuit board assembly, flip chip assemblies, electronic sub-assemblies, box build products, and enclosure systems and provides solutions such as product design and development, test and systems development, analytical testing and calibration, advanced manufacturing engineering, camera vision technology, and power module assembly, among others. [133] From its manufacturing plants in the Philippines, China, Bulgaria, Czech Republic, Germany, Japan, Mexico, Serbia, United Kingdom and the United States, IMI provides engineering, manufacturing, and support and fulfilment capabilities to diverse industries globally. [132]
Ionics EMS, Inc. Ionics EMS Inc. started as a semiconductor and hybrid assembly company in 1974. The company offers unique vertical EMS solutions to the 21st century EMS marketplace. Its business is focused on supplying manufacturing, product development, and engineering services to the global OEMs. The company has 8 facilities with its head office in Laguna and equipped with the latest high-speed SMT equipment and features Smart Factory Solutions for mid and high volume assembly. With over 4 decades of experience in Electronics Manufacturing Services (EMS), it is considered the oldest and most experienced electronics manufacturing services provider in the Philippines with many pioneering "firsts". Among these are being the first to shift to the printed circuit board assembly or PCBA and the first to start the flip chip technology in the country. Ionics EMS, Inc. has worked with a range of world-class OEMs from different industries such as telecommunication, industrial, medical, automotive, consumer electronics, computer and computer peripherals. [134]
Sources
[120] Department of Trade and Industry. (2021, November 22). 50 years of supporting the global semiconductor industry and strong COVID-19 response, the Philippines continue to be a valuable partner in Southeast Asia. Republic of the Philippines Department of Trade and Industry.
https://www.dti.gov.ph/overseas/silicon-valley/philippines-valuable-partner-in-southeast-asia/[121] Industry Gov Ph, Semiconductors and Electronics Industries in the Philippines, Inc., & Board of Investments. (n.d.). Securing The Future of Philippine Industries: Electronics. Industry Gov Ph.
https://industry.gov.ph/industry/electronics/[122] Las Marias, S. (2019, December 4). A Look at the Current Philippine Electronics Manufacturing Landscape (Part 1). EE Times Asia.
https://www.eetasia.com/a-look-at-the-current-philippine-electronics-manufacturing-landscape-part-1/[123] MANUFACTURING INDUSTRIES SERVICE – BOARD OF INVESTMENTS. (2017, April). ELECTRONICS. Board of Investments PH.
https://boi.gov.ph/sdm_downloads/electronics-3/[124] Reuters, & Ochave, R. (2022, January 28). Electronics sector sets 10% growth target for 2022. BusinessWorld Online.
https://www.bworldonline.com/top-stories/2022/01/28/426426/electronics-sector-sets-10-growth-target-for-2022/[125] Semiconductor & Electronics Industries in the Philippines, Foundation Inc. (n.d.). About the Industry.
https://www.seipi.org.ph/profile/about-the-industry/[126] Layug, M. N. C. & Philippine Trade & Investment Center-San Francisco. (2021, October 6). The Philippines is well positioned to support high-tech electronics manufacturing companies’ growth in Southeast Asia. EIN News.
https://www.einnews.com/pr_news/553117340/the-philippines-is-well-positioned-to-support-high-tech-electronics-manufacturing-companies-growth-in-southeast-asia[127] Texas Instruments. (n.d.). Locations | Careers | TI.com. Texas Instruments Careers.
https://careers.ti.com/locations/[128] Clark Subic Marketing. (n.d.). Texas Instruments Clark Facility – Clark, Pampanga Philippines.
https://clarksubicmarketing.com/directory/listing/texas-instruments-clark-facility-clark-pampanga-philippines/[129] Global Data. (n.d.). Analog Devices Inc: Overview.
https://www.globaldata.com/company-profile/analog-devices-inc/[130] Analog Devices. (n.d.). About ADI | Analog Devices.
https://www.analog.com/en/about-adi.html[131] INTEGRATED MICRO-ELECTRONICS, INC. (n.d.). About | IMI.
https://www.global-imi.com/about[132] Surface Technology International. (n.d.). IMI/Ayala Corporation.
https://www.sti-limited.com/about-us/imi-ayala-corporation/[133] The Philippine Stock Exchange. (n.d.). Company Information.
https://edge.pse.com.ph/companyInformation/form.do?cmpy_id=622[134] IONICS EMS, INC. (n.d.). About Us.
https://www.ionics-ems.com/about-us