The Philippines is well positioned to support high-tech electronics manufacturing companies’ growth in Southeast Asia

Panel dialogue at the most sensible causes to transport your electronics production outsourcing trade to the Philippines

SAN FRANCISCO, CA, UNITED STATES, October 5, 2021 / — The Philippines has an extended historical past within the semiconductor provide chain for the reason that Seventies, supporting semiconductor meeting, check, and packaging necessities for such corporations as Texas and Intel. Through the Eighties, Philippine corporations have been construction electronics revealed circuit board assemblies for high-tech shoppers essentially from the United States and Japan. These days, the Philippines semiconductor and electronics production industries are main exporters of high-tech and modern merchandise to international shoppers. The industries are the highest contributor to the rustic’s economic system, contributing 62% of Philippine overall exports in 2020 at US$43 billion.

“We’re strongly positive of a post-pandemic restoration as the basic construction and power of our financial basics stay intact. Regardless of the disruptions caused via COVID19, the Philippines Central Financial institution reported a 37.8% building up in International Direct Investments within the nation from January to Would possibly of this 12 months, in comparison with the similar length ultimate 12 months. The Philippines may be experiencing sturdy production and services and products enlargement within the ultimate 10 years. For Q2 2021, production enlargement is at 22.3%,” Business Undersecretary Rafaelita Aldaba mentioned throughout her keynote message on the Make it Occur within the Philippines on-line trade discussion: Asia Outsourcing Insights – Best causes to transport your electronics production outsourcing trade to the Philippines hung on 24 September 2021.

Including additional, Undersecretary Aldaba highlighted that such resilience and good fortune may also be attributed to probably the most Philippines’ key benefits – its 45 million, highly-skilled and trained, devoted and cost-efficient body of workers with low turn-over or attrition fee. The younger and dynamic inhabitants now not best spice up home intake and native call for but additionally continues to make use of innovation as an engine of enlargement. In 2021, the Philippines positioned 51st out of 131 international locations within the international innovation index.

The Philippines supplies get entry to to key markets via bilateral and regional unfastened industry agreements with Japan, the Eu Loose Business Affiliation, ASEAN and ASEAN’s FTA companions together with China, Australia, New Zealand, India, South Korea and Japan. The Philippines may be a recipient of the generalized device of personal tastes representing tariff privileges with international locations reminiscent of the United States, Canada, the EU, UK, and Russia. The rustic may be accelerating discussions with India, these days now not a member of the Regional Complete Financial Partnership (RCEP), to start negotiations on a preferential industry settlement. This items huge alternatives to put foundations for American companies enlargement and diversification plans into the area. The Philippines no doubt suits the invoice as the following complimentary funding vacation spot because it supplies preferential industry agreements with international strategic companions, being a part of the toughen industries for international production.

The Philippines is house to about 500 semiconductor and electronics corporations and is a a success hub for Semiconductor Production Services and products (SMS) and Electronics Production Services and products (SMS). It’s also changing into an rising participant in IC design, with a rising base of aggressive IC design corporations. The pandemic, likewise, resulted in the quick construction of the Philippine scientific gadgets business.

“There was a development in automation within the business, we don’t seem to be simply exertions anymore. Philippine corporations had been making an investment in a large number of automatic apparatus. For Ionics, our technique is at all times to stay with complex production functions used for electronics production. Again in 2015, Ionics introduced our Business 4.0 technique, so on most sensible of automation, we additionally fascinated about connectivity and intelligence within the manufacturing line. We established a virtual dual of the manufacturing unit to make sure that we’re at all times forward in relation to production technology (Manila News-Intelligencer),” Mr. Jay Chavez, Ionics-EMS leader running officer, shared throughout his presentation.

So far as product capacity, Chavez discussed that quite a lot of complex merchandise from other industries are being produced within the Philippines. With Ionics, they produce scientific gadgets reminiscent of telehealth diagnostic merchandise; dashboards, infotainment programs, safety programs for car; backhoe apparatus for 4G and now transitioning to 5G apparatus; wi-fi fiber networking apparatus; house automation merchandise; and laptop peripherals. As well as, they have got established information science department to put into effect information analytics and deep studying to locate anomalies taking place within the manufacturing line for fast root reason id. A large number of corporations within the Philippines are beginning to enter Business 4.0 development.

The tradition of high quality in production may be some of the necessary the explanation why corporations will have to imagine having a producing operation within the Philippines added Chavez. The Philippines imbibed this tradition, studying and benefitting from the presence of a big base of Jap corporations and shoppers. Maximum Philippine corporations have more than one high quality and control certifications demonstrating focal point on high quality.

Adherence to IP coverage and concentrate on setting, social and governance also are added benefits in production within the Philippines. It’s noteworthy to say that the Philippines isn’t incorporated within the USTR Particular 301 watch listing.

The worldwide provide chain scene has been strongly impacted via the Covid19 pandemic, and production corporations are on the lookout for selection places. The Philippines is a viable selection location as a result of Philippine corporations are very versatile in offering services and products to shoppers, supplies complete transparency and visibility around the provide chain, and adheres significantly to certified resources.

There are different key benefits that businesses will have to imagine the Philippines: English is broadly spoken and it’s the authentic trade language, which facilitates verbal exchange and just right business discussions, in particular when it’s time delicate and with out want of interpreters or translators, therefore, lowering the full charge of doing trade. The Philippines has complex telecom and datacom infrastructure, owing to the massive selection of IT/Industry Procedure Outsourcing sector; powerful logistics business, with the presence of world forwarders and courier services and products; accountability unfastened and “inexperienced lane” device in importation and exportation within the financial zones.

To be told extra concerning the Philippines key benefits, please seek advice from the net recording of the webinar at

The Board of Investments (BOI) and the Philippine Business and Funding Facilities (PTICs) in Silicon Valley, Los Angeles, Washington, DC and New York, co-organized the webinar.

Would possibly Nina Celynne Layug
Philippine Business & Funding Heart-Silicon Valley
+1 415-773-2336
[email protected]
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MIHP Asia Outsourcing Insights – Best causes to transport your electronics production outsourcing trade to the Philippines hung on 24 September 2021

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