The Semiconductor and Electronics Industries in the Philippines Foundation Inc. (SEIPI) expects a better electronics exports performance in the fourth quarter of the year, as the sector hopes to recover from the declines registered earlier this year.
In an interview with reporters, SEIPI president Dan Lachica said electronics exports registered a four percent decline as of September.
'But the good news is we're looking at a very positive Q4,' he said.
Data shared by Lachica showed that electronics exports from January to September declined by 4.37 percent to $33.75 billion. In September alone, electronics exports grew by 4.64 percent to $4.4 billion.
SEIPI originally forecasted a five percent growth for electronics exports this year. However, it later revised the forecast to a flat growth, due to a decline in electronics exports in the first half.
Lachica cited automotive electronics, semiconductors and components as some of the growth drivers for the fourth quarter of the year.
He earlier cited geopolitical conflicts and the US trade war as some of the reasons for the decline in electronics exports in the first half of the year.
'But the demand is still there. And so we're hoping that the thanksgiving demand, the Christmas demand will propel the recovery of the industry,' Lachica said earlier.
'We've seen an interesting reversal in Europe. Germany used to be our highest EU destination and then Netherlands. Now it switched. In Europe, the biggest destination is now Netherlands followed by Germany,' he said in August.
In May, Lachica expressed difficulty in achieving $53.7 billion in electronics exports under the new export development roadmap, citing global economic and geopolitical issues.
Lachica said that under the Philippine Export Development Plan (PEDP) 2023-2028, the country hopes to grow electronics exports to $106 billion by 2028, accounting for 40 percent of the country's total exports.
'But the thing is, we're facing a major handicap even in 2023 because the projection is $53 billion. That target may be at risk for 2023,' Lachica said in May.
The $53.4 billion target for this year under the PEDP is 9.4 percent higher than the $49.09 billion exports registered last year.
'Hopefully we take some action, discuss what we could take to get back with that plan. I'm hoping again for proactive government conversations with them that would help them understand what the issues are,' Lachica said.
Under the PEDP, the country's electronics and electrical exports are targeted to grow to $61.1 billion in 2024, $70 billion in 2025, $80.3 billion in 2026, $92.4 billion in 2027 and $106.4 billion in 2028.
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