SEIPI

SEIPI Calls for Continued Public-Private Collaboration to Strengthen Power Reliability in the Visayas

SEIPI Calls for Continued Public-Private Collaboration to Strengthen Power Reliability in the Visayas

Manila, Philippines — The Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) is calling for sustained collaboration among government agencies, the power sector, and industry stakeholders to strengthen power availability and reliability in the Visayas and support the continued growth of the country’s semiconductor and electronics industry.


Reliable electricity remains critical to semiconductor and electronics manufacturing, where production processes operate continuously and require a stable power supply to maintain product quality, equipment integrity, and delivery commitments. As the organization representing 383 multinational and Filipino- owned semiconductor and electronics companies, SEIPI emphasized that power reliability is essential to sustaining manufacturing operations, investor confidence, and the country’s competitiveness as a production hub.


Several SEIPI member companies operating in the Visayas have experienced recurring power interruptions and rotational load dropping in recent months. While many companies have contingency measures such as backup generators and business continuity plans, unplanned outages continue to affect operations by disrupting production schedules, increasing operating costs, and reducing manufacturing efficiency.


The semiconductor and electronics industry remain the Philippines’ largest export sector, generating USD 49.64 billion in exports in 2025, equivalent to 58.81 percent of the country’s total merchandise exports, while supporting more than three million direct and indirect jobs. Given the industry’s role in the economy and its participation in global supply chains, maintaining reliable power infrastructure is important not only for manufacturers but also for preserving the country’s reputation as a dependable investment destination.


SEIPI recognizes the continuing efforts of the Department of Energy (DOE), the Energy Regulatory Commission (ERC), the National Grid Corporation of the Philippines (NGCP), distribution utilities, and other stakeholders in managing the current power supply situation in the Visayas. The organization noted the DOE’s explanation that the recent yellow and red alerts resulted from the combined effects of scheduled maintenance activities, unexpected outages of generating facilities, and seasonal reductions in hydroelectric and biomass generation.


Recognizing that these challenges involve multiple factors, SEIPI believes that close coordination between government and industry can help reduce the operational impact on manufacturers while longer-term measures are pursued.


Among the practical measures raised by SEIPI is the continued improvement of communication and notification protocols whenever rotational load dropping or manual load curtailment becomes necessary. Providing manufacturing facilities with advance notice, whenever operationally feasible, would allow companies to activate backup power systems, safely manage production lines, protect highly sensitive equipment, and minimize disruptions to operations. Implementation of the Interruptible Load Program (ILP) would also allow companies with backup generators to voluntarily disconnect from the main power grid and run their own facilities during severe power shortages and be compensated for using their own generator sets (gensets).

 

Many member companies have invested in backup generation, energy management systems, and operational contingency plans to ensure business continuity. However, these measures come with additional costs and cannot fully offset the impact of prolonged or unexpected power interruptions. Improved coordination between power sector stakeholders and industrial locators can help companies better prepare for scheduled interruptions while maintaining safe and efficient operations. 


SEIPI also continues to work closely with government agencies, including the DOE, ERC, NGCP, and the Philippine Economic Zone Authority (PEZA), by providing industry feedback and facilitating dialogue between manufacturers and policymakers. Through regular consultations, the organization supports efforts to identify operational improvements, strengthen coordination during power supply constraints, and contribute industry perspectives that can help shape practical and sustainable solutions. 


“Energy security is a shared responsibility, “SEIPI President Dan Lachica said.  “Through continued cooperation between government, the power sector, and industry, we can strengthen power reliability, support manufacturing operations, and reinforce the Philippines’ position as a competitive destination for semiconductor and electronics investments.”


SEIPI reaffirmed its commitment to working hand in hand with government and industry partners in advancing practical solutions that improve power reliability, strengthen energy security, and support the continued growth of the Philippine semiconductor and electronics industry.


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