THE Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) is expecting exports to be level with the totals achieved in 2023, even with US reciprocal tariffs looming over global trade.
“Ironically, while we projected flat growth this year, we are seeing a flattening, if not some modest growth,” SEIPI President Danilo C. Lachica said at the Business Issues Forum on Tuesday.
“In fact, as of March, if you look at the year-to-date number, we may even reach (the 2023 level) to the tune of about $46 billion,” he added.
He said the semiconductor and electronics industry is in a better position, both from a country and an industry perspective, despite the 17% reciprocal tariff across the board.
“For the integrated circuits that we export, there are no tariffs, but for the electronics manufacturing services products, there are tariffs in a range of 3%-7%; we are still trying to negotiate to lower them,” he said.
“The reason really is there are a lot of American multinationals here. They have got a big lobby with the US Semiconductor Industry Association,” he added.
He said that demand continues to be high as almost every product now has some electronic components.
However, he said things are still uncertain with regard to the ultimate US tariff settings.
“We just have to wait and see. The fact of the matter is, I think the approach of the Philippines makes sense, to negotiate down. Let us take advantage of our relatively lower tariffs compared to other Asian nations,” he said.
“Between the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act and the fact that we have lower tariffs, we are optimistic that we are going to see some modest growth in the semiconductor and electronics industry,” he added. — Justine Irish D. Tabile