- Category: Economy
19 Dec 2013
- Written by PNA
SANTA ROSA CITY, Laguna—After the declining exports revenue of the electronics industry in the past years, Semiconductor and Electronics Industries of the Philippines Inc. (Seipi) President Dan Lachica said 2014 will be the turning point of the industry as they position the coming year to have a modest growth of 5 percent in revenue.
Lachica disclosed in a press briefing here on Thursday that they expect the industry revenue to grow by 5 percent with the increasing demands in automotive electronics, consumer electronics and office equipment, among other products.
Only the three subsectors of the industry gained revenue in the first 10 months of 2013, and which are also expected to continue revenue growth by next year.
From January to October of this year, automotive electronics was up by 211.7 percent to $461 million from $148 million in 2012; consumer electronics by 26 percent valued at $259 million from 2012’s $205 million; and office equipment by 1.0 percent, with $436.3-million revenue in the first 10 months of this year from $432 million in 2012.
According to Lachica, a huge investment in electronics from a foreign company will come to the Philippines in 2014 and some electronics companies here will expand their capacity in the same year that will push the industry revenue to grow.
However, the Seipi chief refused to name the new industry player and companies that will double their capacity.
Meanwhile, Lachica said the industry expects a 10-percent to 12-percent contraction in revenue for 2013.
“Year-to-date, from January to October 2013, we’re only $18 billion (in revenue). So we estimate a revenue of $20 billion to $21 billion [by the] end of 2013,” he noted.
This is after semiconductors and subsectors of electronics manufacturing services (EMS) revenues declined in the first 10 months of 2013.
Semiconductor has a negative growth of 9.3 percent in revenue, while the subsectors of EMS, such as electronic data processing, were down by 7.3 percent; control and instrumentation by -14.5 percent; telecommunications by -35.7 percent; communications and radar by -24.4 percent; and medical and industrial instrument by -23.4 percent.
“In 2012 there was an anticipated recovery of the industry, so companies started to build inventory. Well, that recovery didn’t quite happen so what you end up with is a situation where you had higher levels of inventory.… You have to deplete that over the period of time. So your normal level will go down,” Lachica said, in further explaining the negative growth of electronics revenue.
Prior to the declining electronics revenue this year, the industry’s earnings in 2012 were valued at $23 billion, which also contracted from $24 billion in 2011.