The Philippine electronics and semiconductor industries remained optimistic of 1-2 percent or flat growth this year, stating their exports are exempted from the 19 percent US reciprocal tariff.
Dan Lachica, president of the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI), said the country’s exports of semiconductor ICs (integrated circuits) and some electronic products, such as flat panel and laptops, are exempted from the U.S. reciprocal tariff for now.
These items account for the bulk of the industry’s exports to the U.S. With that, their exports “will grow flat this year.”
The flat growth projection for 2025 follows a two-year period of contraction. The industry, the country’s single largest export sector, is recovering from a two-year slump. The industry faces challenges due to a tough business environment and low demand.
But SEIPI expects inventory corrections and the launch of innovative products to drive growth in the coming year. The global semiconductor market is also expected to continue growing in 2025.
In 2024, Philippine electronic product exports totaled USD39.09 billion, representing 53.4 percent of the country’s total exports, according to the Philippine Statistics Authority (PSA). In 2023, total electronics exports hit USD45.64 billion from USD49.66 billion in 2022.
Total Philippine exports in 2023 reached USD73.52 billion from USD79.57 billion in 2022.
