AN INDUSTRY group wants improvement in power reliability in the Visayas, warning that recurring outages are disrupting manufacturing operations and could undermine the country’s competitiveness.
In a statement, the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (Seipi) said reliable electricity is critical for semiconductor manufacturing, where production lines operate continuously and even brief interruptions can affect product quality, damage equipment and delay deliveries.
Seipi, which represents 383 multinational and Filipino-owned semiconductor and electronics companies, is calling for closer coordination among government agencies, power sector players and industry stakeholders to improve power stability.
The group said several member-companies operating in the Visayas have experienced recurring power interruptions and rotational load dropping in recent months.
While many manufacturers have invested in backup generators and business continuity measures, the group said unexpected outages continue to disrupt production schedules, raise operating costs and reduce manufacturing efficiency.
Largest export
The semiconductor and electronics industry remained the Philippines’ largest export sector in 2025, generating US$49.64 billion in exports or 58.81 percent of the country’s total merchandise exports while supporting more than three million direct and indirect jobs.
Seipi said maintaining a reliable power supply is crucial not only for sustaining manufacturing operations but also for preserving investor confidence and the country’s standing as a dependable production hub within global supply chains.
According to the Department of Energy (DOE), the recent yellow and red alerts stemmed from a combination of scheduled maintenance, unplanned outages at power plants and seasonal declines in hydroelectric and biomass generation.
Since May 11, 2026, the Visayas grid has endured recurring yellow and red alerts for eight consecutive weeks as high electricity demand and the forced outages of at least 20 power plants strained available supply. The grid got a temporary reprieve on July 1 with the return to service of PEDC Unit 3.
However, the respite was short-lived. Power alerts were reimposed from July 6 to 10 and again from July 13 to 17 due to the continued unavailability of major coal-fired generating units, lower-than-expected wind power output and additional forced outages at several power plants.
Advanced advisory
To help manufacturers cope with supply constraints, Seipi urged authorities to improve communication and notification protocols whenever rotational load dropping or manual load curtailment becomes necessary.
Advance notice, when operationally feasible, would allow factories to activate backup power systems, protect sensitive equipment and minimize production disruptions, it said.
The organization also pushed for the implementation of the Interruptible Load Program, which would allow companies with their own generator sets to temporarily disconnect from the grid during severe supply shortages and receive compensation for operating on self-generated power.
Seipi said it would continue to work with the DOE, Energy Regulatory Commission, National Grid Corp. in the Philippines and the Philippine Economic Zone Authority through regular consultations to provide industry feedback and identify measures that could strengthen coordination during power supply constraints.
“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.” / KOC