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.
As of May 2022 year-to-date, cumulative electronics exports reached US$ 19.00 billion, or 59.60% of the total Philippine exports. Moreover, 21.85% of the country’s electronics exports went to Hong Kong, followed by USA (12.71%), China (11.56%), Singapore (9.11%) and Japan (7.14%), which complete the top five exports destination of the electronics sector.
Source: NSO (2012)
Source: PEZA, CFZ, BOI and SBMA
|a. If the electronics industry ceases to produce output, purchase inputs and distribute its products, GDP will drop by 28%|
|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|
|c. P1 billion increase in investments create about 620 to 1,408 additional quality jobs in the economy|
|d. A P1 increase in export sales generate 0.11 cents to 0.25 cents additional household income in the economy|
|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|
|Agriculture, Forestry and Fishery||14.9%|
|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