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 – September) data of 2021 shows that PH Electronics Exports has a total value of US$ 34.12 billion. Moreover, 20.58% of the country’s electronics exports  went to Hong Kong, followed by USA (15.30%), China (12.90%), Singapore (8.08%) and Japan (6.50%), which complete the top five exports destination of the electronics sector.


  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

  • Hong Kong – 20.58%
  • USA – 15.30%
  • China – 12.90%
  • Singapore – 8.08%
  • Japan – 6.50%

Source: PEZA, CFZ, BOI and SBMA

PH Electronics Exports (Year-to-Date)

 

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Source: PSA, 2021

 

PH Electronics Imports: (Year-to-Date)

 

Picture3



Source: PSA, 2021

 

 

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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