SEIPI sticks to its 10% growth target this year – Manila Bulletin
Despite logistical challenges and regulatory hurdles, the domestic electronics industry has maintained its 10% growth target this year.
Dan Lachica, chairman of the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI), said reporting robust export growth in the first quarter of this year during its virtual annual general meeting (AGMM) the Thursday, May 26.
In March 2022, Lachica reported that cumulative electronics exports reached $11.79 billion, an increase of 9.3% over last year’s figures. This accounted for 60.70 percent of the Philippines’ total commodity exports of $19.42 billion, thus maintaining its position as the country’s top commodity exporter, he pointed out.
The Philippines’ total electronics exports increased by 12.9% in 2021 and reached a record high of $45.92 billion. Export performance in 2021 was even 6% higher than pre-pandemic exports of $43.3 billion, signaling a resurgence in the industry.
“Our export growth target for 2022 is the same as 10% in 2021, but the reality in 2021 was 12%,” Lachica said.
He said that SEIPI is working to improve the electronics investment environment in the Philippines during the ongoing pandemic, regulatory hurdles are being encountered, such as the modification of the Bureau of Internal Revenue (BIR) VAT rules. ) Revenue Memorandum Circular (RMC) No. 24 – 2022, logistical delays caused by the implementation of the Electoral Commission’s Firearms Ban (COMELEC) and the implementation of Electronic Tracking of Containerized Goods (ETRACC ) Bureau of Customs (BOC), overtime charges and X-ray selectivity system.
Despite these challenges, he said, the organization continues to be “the voice of industry and working with government partners”, as he quoted the Department of Trade and Industry (DTI) , the Anti-Red Band Authority, the Philippine Economic Zone Authority (PEZA) and the Export Development Council (EDC) to improve the investment environment by promoting the ease of doing business to improve the country’s competitiveness.
SEIPI’s electronics industry roadmap called Holistic Product and Technology Strategy (PATHS) includes a plan to establish an Integrated Circuit Design Laboratory (ICDL) within the facilities of the Department of Science and Technology ( DOST).
The ICDL project proposal was posted in the DOST Project Management Information System (PMIS) on April 17, 2022. The ICDL will leverage SEIPI’s mature and extensive experience to attract investment and expansion in the Philippine integrated circuit design industry. The ICDL will complement DOST’s Center for Integrated Circuits and Devices Research (CIDR) ecosystem.
DOST’s Advanced Science and Technology Institute (ASTI) will provide broadband connectivity, high-power computing, and server capacity to link the ICDL to CIDR’s mirror labs. It will leverage the experience of a service provider in building SEIPI’s well-defined customer base among its industry partners and affiliates. SEIPI, in collaboration with the IC Design Technical Working Group (TWG), will select the appropriate Electronic Design Automation (EDA) tool for the ICDL considering the specific IC applications indicated. by SEIPI member companies and collaborating universities in their Letters of Intent (LI).
The IC Design TWG is made up of S&E (semiconductor and electronics) companies and universities working together to solve problems in the IC design industry, including developing the country’s talent pool and l access to integrated circuit design tools.
Regarding parts localization, the TWG continues SEIPI’s initiatives to reduce reliance on imported materials to limit dollar leakage and help the local economy grow further.
SEIPI member companies were asked about their needs for high-value, traceable coins. The consolidated data has been classified into three categories: consumables and packaging materials, main imported materials consisting of indirect materials, and constructive exports of integrated circuits and passive components.
The Wire Harness Technical Working Group will leverage SEIPI’s parts location and initiate projects to help achieve a sustainable supply of wire harness products from local manufacturers. Power cords and magnet wires have recently been added to GTT’s scope on wire harnesses to accommodate more local manufacturers of copper products.
The TWG Industry 4.0 conducted a benchmark survey consisting of questions in three dimensions of manufacturing, namely shop floor automation, shop floor connectivity and shop floor intelligence. The purpose of this survey is to assess the readiness for IR 4.0 of SEIPI’s manufacturing members.
The anonymized data will be used by the TWG to develop a roadmap to guide members on implementing Industry 4.0 to be executed in partnership with the Department of Trade and Industry (DTI).
Another SEIPI PATHS initiative is the Sector Skills Council (SSC), which aims to specify the skills our industry needs, develop and implement a roadmap. The SSC was established in partnership with Philippine Business for Education (PBEd) as part of the A Future that Works (AFW) program funded by the Australian Department of Foreign Affairs and Trade (DFAT).
The first two initiatives identified by the SSC will support the ICDL. The ICDL will provide IC configuration and verification specialist training for retraining technicians and an IC design certification course for upgrading engineers. SSC’s first initiative is being conducted in conjunction with TESDA, where a competency mapping survey is being refined to develop TESDA’s Training Requirements (TRs) to include layout and verification of CIs.
The second SSC initiative involves the review of CHED’s PSGs (policies, standards, and guidelines) in computer science and related engineering degree programs. SEIPI works with its IT Networking and Engineering Committees (NWCs) as well as IC Design and IR 4.0 TWGs to align PSGs with global technology advancements in M&E that are relevant to local industry talent needs.
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