About the Industry

The Philippine Electronics Industry is classified into 73% Semiconductor Manufacturing Services (SMS) and 27% Electronics Manufacturing Services (EMS). Most of the electronics businesses in the country operate in four key areas: Metro Manila, CALABARZON, Northern/Central Luzon and Cebu. Electronic companies in the country practice the best known methods in manufacturing with capabilities ranging from IC packaging, PCB Assembly and Full Product Assembly. 

Year to date (January-October) data of 2015 shows that Philippine electronics exports has a total value of US$ 23.6 billion.  Moreover, 19% of the country’s electronics exports goes to Hongkong, followed by People’s Republic of China and Japan both at 13%. USA and Singapore completes the top five exports destination of electronics sector at 12% and 11% respectively.


  1. Critical Mass of Global Players
    1. Majority of the electronics companies are located in Metro Manila, Calabarzon, Northern/Central Luzon and Cebu.
  2. People/Filipino Workers
    1. Highly competitive, English-proficient and skilled workers
    2. Trainable (8 weeks/2 months), adept at technology, and short learning curves
    3. Wide talent pool as there are about 500,000 who graduate yearly
  3. Strategic Location
    1. Located within 4-hour flying time from major capitals within the region
    2. A critical entry point to over 500 million people in the ASEAN market
    3. A gateway of international shipping and air lanes suited for European and American businesses

  1. SMS – 73%
    1. Components/Devices (Semiconductor)
  2. EMS – 27%
    1. Computer Related Products/EDP
    2. Office Equipment
    3. Consumer Electronics
    4. Telecommunication
    5. Communication/Radar
    6. Control & Instrumentation
    7. Medical/Industrial Instrumentation
    8. Automotive Electronics
    9. Solar/PV

Source: NSO (2012)

  • ISO Certified
  • Practices  the Best Known Methods in Manufacturing (JIT,TQM, 5S, GJ, BSC, QPIC)
  • Capabilities Range from IC Packaging, PCB Assembly, Full Product Assembly
  • In-house Training Capability
  • Runs at 3 Shifts a Day/Compressed WW
  • Better Compensation Package
  • Non-Unionized with Low Turnover
  • Located in Economic Zone or BOI Registered
  • Operates with clean rooms and fully integrated manufacturing facilities
  • R&D Capability

locations

Source: PEZA, CFZ, BOI and SBMA

  • Asia – 70%
  • US/EU – 22%
  • Others – 8%

Source: PEZA, CFZ, BOI and SBMA

Philippine Electronics Exports (1991-2012)

Source: NSO

 

Philippine Electronics Imports (1991-2012)

Source: NSO

Philippine Electronics Investments

Sources: DTI, BOI and PEZA

Employment (2007-2012)

Source: SEIPI’s “Economic Impact of the Electronics Industry on the Philippine National and Local Economies”
Dr. Bernardo M. Villegas, Center for Research and Communication 19 October 2004

 

Note: 1 Direct job creates 7 Indirect jobs, based from SEIPI’s Economic Impact StudySource: SEIPI’s “Economic Impact of the Electronics Industry on the Philippine National and Local Economies” by
Dr. Bernardo M. Villegas, Center for Research and Communication 19 October 2004

In spite of the decline % share in total exports. The electronics industry remains to be a great contributor to the Philippine economy in terms of:

 

gdp drop a. If the electronics industry ceases to produce output, purchase inputs and distribute its products,     GDP will drop by 28%
tax b. P1 increase in export sales generate at least 0.12 cents additional indirect taxes in the economy.  In     2012, the industry’s total direct tax contribution was about US$690 million
quality jobs c. P1 billion increase in investments create about 620 to 1,408 additional quality jobs in the economy
household income d. A P1 increase in export sales generate 0.11 cents to 0.25 cents additional household income in the     economy
invest e. US$1 billion of investments create US$10.5 billion of exports from 2010 to 2012.

 

The semiconductor and electronics still has the highest % impact on the country’s Gross Domestic Product.

Impact of the Hypothetical Loss of Selected Industries on Gross Domestic Product % Drop in GDP
private-services-1private-services2  Private Services 12.1%
agri-forest-fish-1agri-forest-fish-2  Agriculture, Forestry and Fishery 14.9%
semiconductorandelectronics  Semiconductor and electronics industry  28%


Source: SEIPI’s “Multipliers and Multiplier Effects of the Semiconductor and Electronics Industries of the Philippines”
Dr. Bernardo M. Villegas & Cid L. Terosa, University of Asia and the Pacific | October 2013

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