POPULAR DIVING SITES IN THE PHILIPPINES
Why Do Business in the Philippines?
World Heritage Sites in the Philippines
Best Islands In The Philippines
June 27, 2017 22:40
Helping Philippine cities participate in a globalizing economy via eTrade and eTourism
Home The Cities eTrade eTourism Archive About Us Contact Us Photos
No Ads
Full Story
21 Oct 2007
Opportunity in Business: ELECTRONICS
OLONGAPO Export Markets
The Philippine electronics industry began in the mid-seventies when industrialized nations relocated their production facilities to third world countries in order to control the escalating cost of production. The Philippines was an ideal relocation site due to its cost competitive, highly-educated and English-speaking labor. Other factors included the country's geographical location (being at the crossroads of international trade), and attractive government incentives. The conditions that encouraged foreign electronics companies to turn to the Philippines have remained and have been further enhanced by the country's political transition to popular democracy in 1986. Since then, the industry has grown rapidly and overtook agriculture as the leading export earning industry in 1996.
Opportunity in Business - Sectoral Profiles Revenue Streams - Electronics Industry
The Philippine electronics industry began in the mid-seventies when industrialized nations relocated their production facilities to third world countries in order to control the escalating cost of production. The Philippines was an ideal relocation site due to its cost competitive, highly-educated and English-speaking labor. Other factors included the country's geographical location (being at the crossroads of international trade), and attractive government incentives. The conditions that encouraged foreign electronics companies to turn to the Philippines have remained and have been further enhanced by the country's political transition to popular democracy in 1986. Since then, the industry has grown rapidly and overtook agriculture as the leading export earning industry in 1996.
 
 The electronics industry accounts for 69% of the total Philippine exports. In 2001 alone, the industry clocked a total of US$ 24 billion in export revenues. On the average, total electronic exports increased annually by 21% from 1996 to 2000.In 2001, exports slowed down due to inventory build-up and weak semiconductor and electronics demand. The year 2002, however, saw a strong recovery with more than 9% growth over the 2001 level of US$ 21.62 billion.Philippine Electronics CoverageThe Philippine electronics industry covers the following sub-sectors:Semiconductors (microelectronics) and other components
  • Biggest subsector of the industry
  • Consists of manufacturers of integrated ciruits (ICs), transistors, diodes, resistors, capacitors, coils, transformers, PCBs and other components.
  • Major players include the Philippine subsidiaries of Intel, Texas Instruments, Philips, Amkor, Fairchild Semiconductors, etc.
Electronic Data Processing (EDP) Equipment
  • Consists of manufacturers of computers, peripheral storage and input/output devices.
  • Products include laptops, desktop PCs, printers, computer monitors, drives: hard disk, optical, ZIP, CD-ROM.
  • Major players include Toshiba, Acer, Epson, Fujitsu, Ionics, Sampo Technology.
Office Equipment
  • Includes manufacturers of photocopiers, fax machines, and electronic calculators.
  • Companies: Matsushita Business Machines, Sharp and Seiyo Electronics
Telecommunication Equipment
  • Products: telephone sets, modems, copper communication cables, and fiber optic cables.
  • Players include ETSI Technologies, Eupen Cable; and NEC Technologies.
Communications and Radar
  • Products: cellular phones, pagers, closed circuit television (CCTV), CB transceivers, radar detectors, marine and land mobile radios
  • Leading players include Matsushita Communication, Uniden, Casio and Euro CB.
Control and Instrumentation
  • Refers to test and measuring instruments such as oscilloscopes, signal generators, ammeters, voltmeters, ohmmeters, cross talk meters, etc.
  • Philippine-based companies includes manufacturers of PCB assemblies for instrumentation / testing equipment, digital thermometers, microscope of PCB assemblies for instrumentation / testing equipment, digital thermometers, microscope, automotive test equipment and multitesters.
  • Players include Precision Microcircuits, Sara Digital Network, Phil Makoto Corp., and Insung Phils. Electronics.
Medical and Industrial
  • Covers equipment used for X-ray and other medical applications, railway signaling, security and fire alarms.
  • Philippine-based companies are involved in the production of spiro analyzers and smoke detectors.
  • One of the leading players is P. Imes Corporation.
Automotive Electronics
  • Comprised mainly of manufacturers of car stereos, anti-skid brake systems (ABS), and car body electronics (CBE)
  • Major players include Temic Automotive, Fujitsu Ten, Muramoto Audio-Visuals Phils., and Clarion Mfg.
Consumers Electronics
  • Products: TV sets, VCD players, electronic games, radio cassette players and karaoke machines.
  • Major players include Matsushita Electric (Panasonic), Sony, Sharp, LG-Collins and JVC.

Exports (2001)

Total Electronics
  • US$ 24 billion
  • 69% of total Philippine exports
  • Top export markets: United States, Japan, Netherlands, Singapore and Taiwan

Electronics Profile

Characteristics of the industry :
  • Dominated by multinational firms
       715 electronic firms
       72% of which are foreign owned and 28% are locally owned
  • Export-oriented
  • Engaged in assembly and test manufacturing activities
  • High quality and productivity
  • Growing base of components supplier
Characteristics of a typical electronics company :
  • ISO-certified
  • Practices the best known methods in manufacturing (JIT, TQM, 5S, QPIC)
  • Capabilities range from IC packaging, PCB assembly, full product assembly
  • Has in-house training capability
  • Runs at three shifts a day
  • Provides better compensation package compared to other industries
  • Non-unionized with low turnover
  • Operates with clean rooms and fully integrated manufacturing facilities
Employment
  • 335,000 workers as of 2002
Manpower
  • Available labor force of 32 million
  • Over 100,000 engineering, IT and technical graduates every year
  • Trainable and technically capable:
       Needs only 6-8 weeks to learn technical skills
       Familiarity with quality programs
  • Cost competitiveness in terms of compensation
       Production manager US$ 1,000-1,500 / month
       Production supervisor US$ 450 -700 / month
       Production operator US$ 6-7 / day
  • Flexible: multi-skilled and English-speaking
 Global Market TrendsSemiconductors & other components
  • According to the Semiconductor Industry Association, the leading voice of the semiconductor industry in the United States, global chip sales are expected to rise by 6.3% as Asian chip sales are forecasted to increase by 45% upon the opening of new markets in China
  • The world market for semiconductors will grow from US$ 141 billion in 2001 to US$ 218 billion in 2004.
  • According to Morgan Stanley, the IC market in China will grow by nearly 30% a year during the next four to five years, driven by demand for PCs and mobile communications. However, they estimate that domestic production would only be able to meet 15% of that demand.
PCs
  • The worldwide market for PCs is expected to turn positive in Q3. Increased business capital spending for leading-edge computers and networking equipment is going to lead to a semiconductor upturn in mid-2002 with an expected 12% increase in 2003. (Dataquest)
  • From 130 million PCs in 2000 to 213 million PCs in 2005
Digital Consumer Electronics
  • Consumer electronics is a potential growth market this year as digital applications continue to drive the consumer market with analog-to-digital conversion, 2.5G cell phones, digital cameras and digital TV with an expected 15% growth in 2003. (Dataquest)
Mobile Phones
  • Sales in cellular units are expected to increase by 18% in 2003 as positive / recovery signs from the cell phone market are foreseen during Q2 of 2002. (Dataquest)
  • The handset market is projected to grow from 400 million handsets in 2000 to one billion handsets by 2004
  • Demand for mobile phone handsets is recovering so fast that manufacturers are being hit by a temporary shortage of some parts. Demand is being led by Asia, particularly the largely untapped Chinese market, but there is growth too in both Europe and United States.
Servers
  • Sales of Itanium-based servers will reach 26,000 units in 2001 and is expected to increase to 540,000 units over the next three years.
Smart Handheld Devices
  • The worldwide smart handheld market will increase from US$ 8.2 billion in 2000 to US$ 26.6 billion in 2004.

Optical Networking Equipment
  • The market for optical networking equipment is projected to grow from US$ 31 billion in 2000 to US$ 93 billion by 2003.

Cable Modems and Digital Subscriber Line (DSL)
  • The market for semiconductors for cable and DSL is expected to grow from US$ 2 billion to more than US$ 3.8 billion in 2003.
 Source:  Department of Trade and Industry
By: PhilCTTIS Data Center
Related Stories
2012-11-23  TAGUIG  DOE assures of stable power supply in Visayas  
2012-11-23  SAN PABLO  Laguna bags 2 Nat'l Gawad Saka 2012 Awards 
2012-11-23  ANTIPOLO  Antipolo invites more investors thru summit 
2012-11-16  MANILA  IMF chief lauds Phl's economic policies  
2012-11-15  Philippine Cities Trade and Tourism Information Service  Philippine Consulate In HK Lauds CEBís Iloilo-HK Direct Service 
2012-11-15  Philippine Cities Trade and Tourism Information Service  Philippine Consulate In HK Lauds CEBís Iloilo-HK Direct Service 
2011-04-14  MAKATI  BOI-listed investments up 205% in Q1  
2011-03-22  MANILA  Exports in 2010 break all previous records 
2011-02-08  MAKATI  Philippines pushes for more Indian trade and investments 
2011-02-07  MAKATI  ASEAN trade link technology framework complete 

CORPORATE NEWS | Trade News | Tourism News
2012-11-27  TAGUIG  Philippine market one of top 3 JP Morgan picks for 2013 
2012-11-27  SAN FERNANDO PAMPANGA  Oldest mining firm moves to health services 
2012-11-16  Philippine Cities Trade and Tourism Information Service  Trademarks Online Filing System 
2012-11-16  Philippine Cities Trade and Tourism Information Service  P&G Plans $50-M Plant Expansion 
2011-03-22  PASIG  EEI profit soars 17% to P657 M 
2011-03-19  MAKATI  Wal-Mart renews interest in RP venture 
2011-03-19  PASIG  Foreign investors interested in opening 20 gohotels.ph branches 
2011-03-19  OLONGAPO  FVR to launch International School of Sustainable Tourism 
2011-02-12  MAKATI  DBP to issue up to $300-million bonds 
2011-02-08  MANILA  Climate change-ready crops developed 
PhilCTTIS Investments Promotions Center
2011-12-31  BUTUAN  Butuan City now considered new investment destination in Mindanao 
2011-03-19  BACOLOD  12 companies going big into organic food production 
2010-08-22  ILOILO  Diversify for more profit 
2010-08-21  LUCENA  Patronizing virgin coconut oil (VCO) 
2010-08-21  CEBU  Sectoral Profile Revenue Streams: HOME FURNISHING 
2010-08-05  CAGAYAN DE ORO  Opprtunities for Investments in Region X 
2010-08-01  MANILA  Opportunity in Business: CONSTRUCTION MATERIALS 
2008-06-01  MAKATI  Export Markets in Germany 
2008-01-12  ILOILO  Preserved Fruit & Vegetable Market: GREECE 
2008-01-12  Philippine Cities Trade and Tourism Information Service  Preserved Fruit & Vegetables Market: EU 
2007-11-04  VALENZUELA  Opportunity in Business: WEARABLES 
2007-11-04  BAGUIO  Preserved Fruit & Vegetable Market: FINLAND 
2007-11-01  TAGUIG  Opportunities in URBAN FARMING 
2007-11-01  QUEZON CITY  Opportunity in Business - Sectoral Profiles Revenue Streams - MOTOR VEHICLE PARTS & COMPONENTS 
2007-10-21  DAVAO  Opportunity in Business: ORGANIC & NATURAL PRODUCTS 
2007-10-21  OLONGAPO  Opportunity in Business: ELECTRONICS 
2007-10-21  DAVAO  Opportunity in Business: FOOD 
2007-10-21  Philippine Cities Trade and Tourism Information Service  Opportunity in Business: GIFTWARE & HOLIDAY DECOR 
2007-10-21  DAGUPAN  Sectoral Profile Revenue Streams: Marine Products 

eTrade Contacts
Major ProductsLocation Of SuppliersExport Markets
Trade FairsForeign Buyers GuideEmbassies
Trade Related Government Regulations & PoliciesCalendar Of EventsGovernment Offices Directory
General Info

eTourism Contacts
MuseumsHotelsResorts
HospitalsCity FestivalsEmergency Numbers
Tourist OperatorsTourist AttractionsSpecial Areas Of Interest
Accredited Travel AgenciesTourism Related Government Regulations & PoliciesUniversities
TransportationGovernment Tourism OfficesGeneral Info

Calendar of Events Contacts
Cultural Calendar

Cultural Calendar Contacts

eTrade Contacts


No Ads
   
Logos and trademarks are the property of their respective owners.
Philippine Cities Trade & Tourism Information Service (c) Copyright 2007, all rights reserved.