Download - philippines electronics industry
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TTHEHE
PPHILIPPINEHILIPPINE
EELECTRONICSLECTRONICSIINDUSTRYNDUSTRY
- T H E D R I V E R O F T H E P H I L I P P I N EE C O N O M Y
E R N I E B . S A N T I A G OS E I P I P R E S I D E N T
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CHANGING FACE OFCHANGING FACE OF
EXPORTSEXPORTS
Agro-Based49%
Garments - 7%
OtherManufacturedProducts 10%
Forest Products - 10%
Others - 2%
-
Machinery and Transport - 4.4%
Wearables - 0.16%
Food - 2.9%
Motor Vehicles and Parts - 1.74%Home Furnishings - 1%
Marine Products - 1%
Giftwares - 0.45%
Construction Materials - 0.49%
Organic Products - 0.18%
Mineral Products - 2.1%
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FROM COCONUTCOCONUT CHIPSCHIPSTO MICROCHIPS
Mineral Products -18%
ELECTRONICSELECTRONICS -- 3%3%
19701970ELECTRONICSELECTRONICS --
61%61%
20102010
Sources : DTI/NSOSEIPI
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PHILIPPINE ELECTRONICSPHILIPPINE ELECTRONICS
INDUSTRYINDUSTRY
Philippine Exports WITH Electronics
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Philippine Exports WITH Electronics
PHILIPPINE ELECTRONICSPHILIPPINE ELECTRONICS
INDUSTRYINDUSTRY
Philippine Exports WITHOUT Electronics
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THE TOP CHIPMAKERSTHE TOP CHIPMAKERS
7 OUT OF THE WORLDS TOP 20 CHIPMAKERS ARE
OPERATING IN THE PHILIPPINES
TIPI Philips Fairchild
Analog Sanyo On Semi Rohm
Source: SEIPISEIPI
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THE WORLDS TOP ELECTRONICSTHE WORLDS TOP ELECTRONICSFIRMSFIRMS
FOUR OF THE LARGEST HDD PRODUCERS ARE IN THEPHILIPPINES
Hitachi Toshiba Fujitsu NEC
CEBU MITSUMI employs >20K, biggest employerin the Philippines; manufactures computerperipherals and components such as CD-R,CD-RW, optical pick up
Source: SEIPISEIPI
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AMKOR employs 8,000 people for its ICpackaging with 400 formats, from leadframe toBGA solutions
THE WORLDS TOPTHE WORLDS TOP ELECTRONICSELECTRONICSFIRMSFIRMS
emp oys , , one o e op erm naprinter production base of global Epson group,producing its 10 millionth printer recently
LEXMARK produces 40 million printheads/year
Source: SEIPISEIPI
CONTINENTAL TEMIC produces automotiveelectronics parts (sensors, auto accessories, etc.)
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HOMEGROWN SMS AND EMSHOMEGROWN SMS AND EMSFIRMSFIRMS
IMI Ionics P I Fastech Team
and a cluster of homegrown ODMs time recorder,avr, power supplies, alarm systems, electronic
ballasts, testers, gps tracking, automated tollcollection, others
Source: SEIPISEIPI
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IC DESIGN: ASIC AND FPGA DESIGN, VHDL
VERIFICATION (ROHM LSI DESIGN PHILS., SANYO
There is a budding silicon design and development industry
in the Philippines
SILICON DESIGN ANDSILICON DESIGN ANDDEVELOPMENTDEVELOPMENT
SEMICONDUCTOR, EAZIX, SYMPHONY, BITMICRO) IC PACKAGING DESIGN: (TI, FAIRCHILD SEMICON)
MODULE DESIGN, PRODUCT DESIGN:
(LEXMARK, EAZIX) FIRMWARE: EMBEDDED SYSTEMS HW/SW, EMBEDDED
LINUX
(CANON I.T., TSUKIDEN)
Source: SEIPISEIPI
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Magnet Actuator
Diodes Base& CoverCoils
SpacerRing
Motors
A GROWING BASE OFA GROWING BASE OF SUPPLIERSSUPPLIERS
FOR HARD DISK DRIVES (HDDs)FOR HARD DISK DRIVES (HDDs)
ICs Connectors
Capacitors Transistors
PackagingMaterials
PlasticMolded Parts
Screws
Resistors
PCB/PCBA
MetalPressed PartsMagnetic
Head
CarriageAssembly
SUPPLYING THE WORLD WITH 2.5 MILLION HDD PER MONTHSource: SEIPI
SEIPI
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Microprocessors Logic Devices
Strong in assembly, test and packaging design
for semiconductor manufacturing servicesDSPs
TESTTEST ANDAND PACKAGING DESIGNPACKAGING DESIGN
Analog Devices Flash Memory
Power Devices
CAPTURING 10% OF THE SMS WORLD
SUPPLY
Memory Chips Opto Devices
Source: SEIPISEIPI
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COMPETITIVENESS OF THECOMPETITIVENESS OF THEINDUSTRYINDUSTRY
CRITICAL MASS OF GLOBAL PLAYERSCRITICAL MASS OF GLOBAL PLAYERS
Source: SEIPISEIPI
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NUMBER OF FIRMS: 936
THE COMPANIES IN THE INDUSTRYTHE COMPANIES IN THE INDUSTRY
NATIONALITY:- 72% Foreign-
Others
8%
Japan
30%
Sources: Philippine Board of Investments (BOI) &
Philippine Economic Zone Authority (PEZA)
Philippines
28%
Malaysia
2%Singapore
2%
Taiwan
4%
Europe
7%
USA
9%
Korea10%
Source: BOI/PEZASEIPI
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ISO Certified
Practices the Best Known Methodsin Manufacturing (JIT,TQM, 5S, QPIC)
Capabilities Range from IC Packaging,PCB Assembly, Full Product Assembly
PROFILEPROFILE OF TYPICALOF TYPICAL
ELECTRONICS COMPANIESELECTRONICS COMPANIES
Runs at 3 Shifts a Day
In-house Training Capability
Non-Unionized with Low Turnover
Better Compensation Package
Operates with clean rooms and fullyintegrated manufacturing facilities
Located in Economic Zone or BOI Registered
Source: SEIPISEIPI
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LOCATION OF ELECTRONICSLOCATION OF ELECTRONICS
COMPANIESCOMPANIES
Metro Manila42%
Northern/Central Luzon
3%
Calabarzon48% Cebu
7%
Sources: PEZA & BOI
SEIPI
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COMPETITIVENESSCOMPETITIVENESS OF THEOF THEINDUSTRYINDUSTRY
PEOPLEPEOPLE
Source: SEIPISEIPI
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DIRECT EMPLOYMENTDIRECT EMPLOYMENT
19921992--20102010
2010 FIRST TIME TO REACHOVER 500K DIRECT JOBS
Sources: BOI/PEZASEIPI
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STRENGTHS OF FILIPINOSTRENGTHS OF FILIPINOWORKERSWORKERS
AVAILABLE- a labor force of 36 Million- about 100,000 engineering
and technical graduatesevery year
TRAINABLE AND
TECHNICALLY CAPABLE- need only 6-8 weeks to learntechnical skills
Source: SEIPI
COST COMPETITIVEFunctional Head - US$ 38400-73386/annum
Production Engineer - US$ 3466-10066/annumProduction Operator - US$ 1980- 3869/annum
FLEXIBLE- Multi-skilled, English speaking- Operates at 3 shifts /day- Minimal turn-over rate
SEIPI
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ELECTRONICS EXPORTS:ELECTRONICS EXPORTS:19921992 -- 20102010
25
30
35
25,3427,07
23,7624,17
26,6427,30
29,60 3128,50
22 20
31.1
US$BILLIO
NS
2010 THE HIGHEST IN HISTORY
Sources: National Statistics OfficeBureau of Export Trade Promotion, DTI
-
5
10
15
20
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2,973,78
4,897,55
10,61
14,98
19,87
,
SEIPI
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DESTINATIONSDESTINATIONS OF EXPORTSOF EXPORTS
USAUSA--14%14%
EUROPEEUROPE--22%22%JAPANJAPAN -- 15%15%
CHINACHINA -- 13%13%
Source: Bureau of Export Trade Promotion, DTI
EXPORTS DESTINATIONEXPORTS DESTINATION USA & EUROPE: 36%USA & EUROPE: 36% ASIA:ASIA: 64%64%
OTHER ASIAOTHER ASIA -- 36%36%
SEIPI
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ELECTRONICS INVESTMENTSELECTRONICS INVESTMENTS19921992--20102010
2,00
2,50
2,16
1 47
2,27
US$BILLIONS
2010 THE HIGHEST IN HISTORY7TH TIME OVER US$ 1B
0,00
0,50
1,00
,
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
0,04
0,22
1,291,08
0,670,79
1,24
0,72
0,270,23
0,44
0,78 0,75
,
0,420,47
SEIPI
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STRONG START,STRONG START,ENCOURAGING FINISHENCOURAGING FINISH
SEIPI
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1. JOBS + 25K
2010: A GOOD YEAR2010: A GOOD YEAR
.
3. INVESTMENTS + 384%
SEIPI
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Several large multinationalsare revisiting their long-termstrategies and are making decisions
BUSINESS ENVIRONMENTAL SCANBUSINESS ENVIRONMENTAL SCAN
now.
Theres a growing sentiment toreassess their geographical footprint
in Asia.
SEIPI
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However, it is also clear that China is notthe only player. The China + + strategy islikewise still in play.
BUSINESS ENVIRONMENTAL SCANBUSINESS ENVIRONMENTAL SCAN
Vietnam is very popular. Malaysiacontinues to have the rightinfrastructure. Indonesia is gearing up.
The Philippines is in a very good situationto be part of the action. The timing is now!
SEIPI
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Given this business condition,the industry is bullish to sustain,if not further increase the growth
INDUSTRY OUTLOOKINDUSTRY OUTLOOK
in the Philippines
Moreover, there is growing optimismdriven by the general industry feeling thatthe new government of President Aquinois morally upright and is full of promise
SEIPI
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INDUSTRY TARGETINDUSTRY TARGET
The industry aims to double-up electronics exports
From US$ 22 Billion in 2009
To US$ 50 Billion in 2016
SEIPI
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40
50
34343737
40404444
4848>50>50
US
Billions
EXPORT TARGETSEXPORT TARGETS
20102010--20162016
-
10
20
30
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
3 45
811
15
20
2527
2224 24
27 27 3031
29
22
3131
Sources: NSO/DTISEIPI
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1.1. INCREASE CAPACITYINCREASE CAPACITY
2.2. IMPROVE TECHNOLOGYIMPROVE TECHNOLOGY
DOUBLINGDOUBLING--UP EXPORTSUP EXPORTS
3.3. LOWER THE COST OF BUSINESSLOWER THE COST OF BUSINESS
4.4. CREATE A CONDUCIVE ENVIRONMENTCREATE A CONDUCIVE ENVIRONMENT
SEIPI
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INCREASING INVESTMENTSINCREASING INVESTMENTS
ANNUAL TARGET OF US$ 2 BILLIONANNUAL TARGET OF US$ 2 BILLION
PROMOTE THEPROMOTE THE
SEIPI
AND THE GREAT FILIPINOAND THE GREAT FILIPINOELECTRONICS WORKERSELECTRONICS WORKERS
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DEVELOPING TECHNOLOGYDEVELOPING TECHNOLOGYROADMAPROADMAP
MANUFACTURINGMANUFACTURING
PACKAGING, ASSEMBLY, TEST, WIREPACKAGING, ASSEMBLY, TEST, WIREBOARD, RF COMPONENTS, POWERBOARD, RF COMPONENTS, POWERMANAGEMENT, ETC.MANAGEMENT, ETC.
SEIPI
PV/SOLAR
AUTOMOTIVEELECTRONICS
MASSDATASTORAGE
R&D
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LOWER COST OF BUSINESSLOWER COST OF BUSINESS
LOWER COST OF POWERLOWER COST OF POWER
SEIPI
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A CONDUCIVE BUSINESSA CONDUCIVE BUSINESS
ENVIRONMENTENVIRONMENT
INFRASTRUCTUREINFRASTRUCTURE
SEIPI
NONNON--DISRUPTIVE LABORDISRUPTIVE LABOR
CONTINUE WHAT HAS BEEN GIVENCONTINUE WHAT HAS BEEN GIVEN
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THE INDUSTRY AS DRIVERTHE INDUSTRY AS DRIVER
PUBLICPUBLIC--PRIVATE PARTNERSHIPPRIVATE PARTNERSHIP
SEIPI
THE GOVERNMENT AS ENABLERTHE GOVERNMENT AS ENABLER
SOME MEN SEE THINGS AS THEY ARE
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AND SAY WHY?
II DREAMDREAM THINGSTHINGS THATTHAT NEVERNEVER WEREWEREAANDND SAYSAY WHYWHY NOTNOT??
G B SG B S
SEIPI
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