Philippine Semiconductor Industry Anticipates Contraction in 2023

The semiconductor industry in the Philippines is projected to experience a contraction of about 9 to 10 percent in 2023, according to the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI). Initially, the industry expected a growth of 5 percent; however, global political and economic factors, coupled with inventory correction issues, have adversely affected the sector. The first quarter of 2023 saw a 15 percent contraction, and although there was a partial recovery, the overall trend remains negative. SEIPI’s board meeting concluded that the contraction in 2023 would likely be significant compared to 2022 levels. However, SEIPI President Dan Lachica expressed optimism for 2024, anticipating flat growth in global demand for semiconductors compared to 2023​​.