Electronics is acknowledged as the main driver of the Philippine economy as it accounts for 63% of the country’s total exports (as of August ‘08). The Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) is the leading and largest organization of foreign and local semiconductor and electronics companies in the Philippines. With the organization’s member companies responsible for over 70% of total electronics exports, this unequivocally makes SEIPI a major economic force in the Philippines. The industry has effectively turned the Philippines into a nation with one of the world’s most technologically advanced export structures. At SEIPI, foreign and local manufacturing firms, electronics suppliers, sub-contractors, service providers and other allied companies and industry organizations that recognize converge, to revolutionize industrial development in the Philippines.
Classification of the Electronics Industry
The semiconductor and electronics industry can be classified into the following categories:
Components and Devices
Consists of Pentium IV, Integrated Circuits, Transistors, Diodes, Resistors, Coils, Capacitors, Transformers, Lead frames, PCB
Computer Related Products and Electronic Data Processing (EDP)
Consists of Personal Computers (PCs), Hard Disk Drives (HDDs), CD ROM, Motherboards, Software Development, Data encoding and conversion, Systems integration customization
Automotive Electronics
Consists of Telematics – Global Positioning System (GPS), Hybrid Car and Safety .
Consumer Electronics
Consists of Flat panel TV, High definition TV, Set top box, iPod, Digital Cameras,
Office Equipments
Consists of Photocopy machines and its parts, electronics calculators
Communications and Radar
Consists of 3G handset, TV Reception on handset, Mobile services, Radars
Telecommunications
Consists of Telephones, Scanners, Satellite receivers, Cellular phones
Control and Instrumentation
Consists of PCB Assembly for instrumentation equipment
Medical and Industrial
Consists of RFID, Energy Saving Control, Green electronics, Optical Recognition
Characteristics of the Industry
- Essentially engaged in assembly and test manufacturing, as well as to highly technical labor intensive activities.
- Export-oriented.
- Dominated by multinational companies.
- Growing base of components suppliers.
- High quality and high productivity.
Profile of a Typical Electronics Company
- ISO (International Standardization Organization) Certified.
- Practices BKM or Best Known Methods in manufacturing like JIT, TWM, 5S and QPIC.
- Capabilities range from IC Packaging, PCB assembly and Full product assembly.
- In-house training capability.
- Runs at three (3) shifts a day.
- Better compensation package.
- Non-unionized with low turn-over.
- Located in Economic Zones or BOI registered.
- Operates with clean rooms and fully integrated manufacturing facilities.
Critical Mass of Global Players
|
Year
|
Investments(US$)
|
|
1992
|
US$ 40 Million
|
|
1993
|
220 Million
|
|
1994
|
1.290 Billion
|
|
1995
|
2.160 Billion
|
|
1996
|
1.080 Billion
|
|
1997
|
1.470 Billion
|
|
1998
|
670 Million
|
|
1999
|
790 Million
|
|
2000
|
1.240 Billion
|
|
2001
|
720 Million
|
|
2002
|
270 Million
|
|
2003
|
230 Million
|
|
2004
|
443 Million
|
|
2005
|
776 Million
|
|
2006
|
747 Million
|
|
2007
|
1.4 Billion
|
