The Philippine electronics products and services play a critical role in the country's economic development and in the global electronics marketplace.
The electronics industry has grown significantly in the past decades and has become the country's top dollar earner and a major source of domestic employment.
The country supplies 10% of the world's semiconductor manufacturing services needs and accounts for 50% of the world's production of 2.5" hard disk drives and 10% of the world's production of 3.5" hard disk drives.
A True Export Success Story
The electronics industry now contributes 69% to the country's total export revenues (from only 3% in 1976).
The industry continues to enjoy robust growth rates. It grew at an average of 20% annually from 1996 to 2000.
By the end of 2004 the industry export revenues totaled $26.6 Billion, recording a 10.3% increase vs. 2003.
Its phenomenal growth is due to the following:
growing demand for existing products
merging of technologies and markets
launch of new products
development of new markets
Attractive trade and investment opportunities
The Philippine electronics industry presents lucrative trade and investment opportunities. The industry is dominated by multinational companies. There are about 715 electronics firms in the country, 72% are foreign-owned and 28% locally-owned.
Multinational electronics companies have chosen to relocate their production facilities to the Philippines to avail of the country's cost-competitive and high-quality technical labor, as well as its strategic location in relation to its Asian neighbors.
Among the major electronics companies with production facilities in the Philippines are: Intel, Texas Instruments, Hitachi, Fujitsu, Amkor, Fairchild Semiconductors, Toshiba, Matsushita Electric, Sony, Sharp, LG-Collins, JVC, NEC
Technologies.
Extensive Range of Products and Services
The Philippine electronic industry consists of the following segments:
semiconductor and electronic components, the largest segment
consumer electronics
telecommunications and industrial electronics
computer products and peripherals
The industry also offers electronics services. Local companies engaged in electronic assembly manufacturing provide facilities, manpower, utilities and administrative services, while their customer supply raw materials, equipment and process technology.
There is also a growing number of local companies that offer complete end-to-end electronics manufacturing solutions
company to some of the world's leading original equipment manufacturers (OEMs).
The end-to-end solutions include product design and development, engineering, prototyping, materials management, volume manufacturing (electronic part assembly and complete product assembly), and order fulfillment.