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Electronics Industry in Philippines


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



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