THE semiconductor industry in the country is optimistic about reaching its target growth rate at the end of the year despite a global economic slowdown.
Semiconductor and Electronics Industries in the Philippines Inc. (Seipi) president Ernie Santiago said the industry’s five percent target growth rate “may happen,” provided there is a flat or better performance during the second quarter of this year.
“A flat or a better Q2 (second quarter) will confirm that the global market has managed to avoid a sharp slowdown,” Santiago said in a presentation he gave last Friday to stakeholders in the industry.
Seipi recently held a three-day general membership meeting at the Shangri-la’s Mactan Island Resort and Spa.
From January to May this year, exports from the electronics industry were down 3.8 percent, translated to $12.5 billion compared to $12.9 billion in the same period in 2007.
Investments
Investments were also down to a negative 54 percent during the first five months of this year.
On the other hand, imports grew to 0.58 percent to $7.667 billion this year.
Santiago said the Philippine electronic industry was able to break through the $31-billion mark in total exports in 2007.
He noted, though, that investments in the electronic industry reached $1.36 billion last year, the highest in 10 years.
As of June 2008, investments in the electronic industry was already at $500 million.
Santiago explained that the worldwide slowdown in the industry is mainly due to surging oil prices and the problems hounding the United States economy. There are also signs of recession in Europe with the slow growth in purchasing, he added.
Challenges
“Increase in prices of raw materials, inflation and currency fluctuation are also the current challenges to the world,” he said.
But Santiago said something can still be done about the present economic situation.
“We, in the electronic industry, must take the leadership in addressing the global challenges,” he said.
Based on the recent Asia Electronic Forum, global stakeholders in the industry identified, among others, good housekeeping as a top priority among companies.
Good housekeeping will include lean and green manufacturing and eco-design initiatives.
There is also a need to adopt the “6R culture.” This refers to: re-education of industry players on social responsibility; re-designing products to be more efficient in energy consumption; reduction of usage and waste; recycling; re-using resources, and; re-inventing.
The electronic forum also encouraged the industry to develop alternative energy.
Computers and consumer devices—like mobile phones, LCD (liquid crystal display) TVs and digital cameras—are identified as the demand drivers for semiconductor sales this year. (DME)
