El catalizador contra la corrupción: alcanzar los ODMs EN 2015
THE PHILIPPINE ELECTRONICS INDUSTRYHOMEGROWN SMS & EMS FIRMS … and a cluster of homegrown ODMs...
Transcript of THE PHILIPPINE ELECTRONICS INDUSTRYHOMEGROWN SMS & EMS FIRMS … and a cluster of homegrown ODMs...
THE
PHILIPPINE
ELECTRONICS
INDUSTRY
- THE DRIVER OF THE
PHILIPPINE ECONOMY
1. ABOUT SEIPI
2. THE PHILIPPINE
ELECTRONICS INDUSTRY2.1 WHERE IT HAS BEEN
2.2 WHERE IT IS NOW
2.3 WHERE IT IS GOING
SEIPI
ABOUT
SEIPI
SEIPIS E M I C O N D U C T O R & E L E C T R O N I C S I N D U S T R I E S I N T H E P H I L I P P I N E S I N C .
ABOUT SEIPI
Source: SEIPI
The leading and largest organization of
more than 250 foreign and Filipino
semiconductor and electronics companies in
the Philippines (including its allied and
support industries)
Its membership include leading global
players like Texas Instruments, Hitachi,
Toshiba, Sharp, Samsung, Analog Devices,
Amkor Technologies, Sunpower, Cypress,
Moog, Fairchild, Maxim, Continental Temic,
Lexmark, Rohm, and Filipino companies
such as IMI, Ionics, Fastech, First Philec, etc.
SEIPI
ABOUT SEIPI
Source: SEIPI
THE INDUSTRY IT REPRESENTS
- accounts for 2/3 of the total Philippine exports
- directly employs more than half-million engineers,
technicians and operators
- invest an average of US$ 1 B annually
- provides the transfer of best global practices
on high-technology manufacturing
SEIPI
ABOUT THE
PHILIPPINE
ELECTRONICS
INDUSTRY
WHERE IT
HAS BEEN
Philippine Exports WITH Electronics
TOTAL PHILIPPINE EXPORTS1995-2010
SEIPISource: NSO
$17$20
$25
$29
$35
$38
$32$35 $36
$39$41
$47
$50 $49
$38
$51
$10 $11 $12 $11 $11 $11 $10 $10$12 $12 $13
$17$19 $20
$16$20
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
$55
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
US
$ B
ILLIO
NS
Philippine Exports WITHOUT Electronics
TOTAL PHILIPPINE EXPORTS1995-2010
Source: NSO
SEIPI
….FROM COCONUT CHIPS TO MICROCHIPS
Agro-Based
49%
Mineral Products -
18%
ELECTRONICS - 3%
Garments - 7%
Other
Manufactured
Products – 10%
Forest Products - 10%
Others - 2%
1970
ELECTRONICS -
58%
Garments and Textiles - 6%
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%
Others - 13%
2009
Sources : DTI/NSO
CHANGING FACE OF
PHILIPPINE EXPORTS
SEIPI
SEVEN OUT OF THE WORLD’S TOP 20 CHIPMAKERS
ARE OPERATING IN THE PHILIPPINES
TIPI Philips Fairchild
Analog Sanyo On Semi Rohm
Source: SEIPI
THE TOP CHIPMAKERS
SEIPI
THE WORLD’S
TOP ELECTRONICS FIRMS
FOUR OF THE LARGEST HDD PRODUCERS
ARE IN THE PHILIPPINES
Hitachi Toshib
a
Fujitsu NEC
CEBU MITSUMI – employs >20K, biggest
employer in the Philippines; manufactures
computer peripherals and components such
as CD-R, CD-RW, optical pick up
Source: SEIPI
SEIPI
EPSON – employs 5,000, one of the top 3 terminal
printer production base of global Epson group,
producing its 10 millionth printer recently
LEXMARK – produces 40 million printheads/year
AMKOR – employs 8,000 people for its IC
packaging with 400 formats, from leadframe to
BGA solutions
THE WORLD’S
TOP ELECTRONICS FIRMS
Source: SEIPI
SEIPI
HOMEGROWN SMS & EMS FIRMS
… and a cluster of homegrown ODMs time recorder,
avr, power supplies, alarm systems, electronic
ballasts, testers, gps tracking, automated toll
collection, others
IMI Ionics PSI Fastech Team
Source: SEIPI
SEIPI
ICs Connectors
Magnet
Capacitors Transistors
Actuator
Packaging
Materials
Diodes
Base
&
Cover
Plastic
Molded
Parts
Screws
Coils
Resistors
PCB/
PCBA
Metal
Pressed
Parts
Spacer
Ring
Motors
Magnetic
Head
Carriage
Assembly
…SUPPLYING THE WORLD WITH 2.5 MILLION HDD PER MONTH
A GROWING BASE OF SUPPLIERS
FOR HARD DISK DRIVES (HDDs)
Source: SEIPI
SEIPI
Microprocessors
Analog Devices Flash Memory
Power Devices
Logic Devices
Strong in assembly, test and packaging design
for semiconductor manufacturing services…
…CAPTURING 10% OF THE SMS WORLD SUPPLY
Memory Chips
DSPs
Opto Devices
TEST AND PACKAGING DESIGN
Source: SEIPI
SEIPI
COMPETITIVENESS OF THE
ELECTRONICS INDUSTRY
CRITICAL MASS OF GLOBAL PLAYERS
SEIPISource: SEIPI
NUMBER OF FIRMS: 959 COMPANIES
THE COMPANIES IN THE
ELECTRONICS INDUSTRY
NATIONALITY:
- 72% Foreign
- 28% Filipino
Philippines28%
Malaysia2%
Singapore2%
Taiwan4%
Europe7%
USA9%
Korea10%
Others8%
Japan30%
SEIPISources: BOI/PEZA
LOCATION OF
ELECTRONICS COMPANIES
Metro Manila42%
Calabarzon48% Cebu
7%
Northern/
Central Luzon3%
Sources: BOI/PEZA
SEIPI
ISO Certified
Runs at 3 Shifts a Day
In-house Training Capability
Practices the Best Known Methods
in Manufacturing (JIT,TQM, 5S, QPIC)
Non-Unionized with Low Turnover
Capabilities Range from IC Packaging,
PCB Assembly, Full Product Assembly
PROFILE OF TYPICAL
ELECTRONICS COMPANIES
Better Compensation Package
Operates with clean rooms and fully
integrated manufacturing facilities
Located in Economic Zone or BOI Registered
Source: SEIPI
SEIPI
COMPETITIVENESS OF THE
ELECTRONICS INDUSTRY
PEOPLE
SEIPISource: SEIPI
STRENGTHS OF FILIPINO
ELECTRONICS WORKERS
AVAILABLE - a labor force of 36 Million
- about 100,000 engineering
and technical graduates
every year
TRAINABLE &
TECHNICALLY
CAPABLE - need only 6-8 weeks
to learn technical skills
COST COMPETITIVEFunctional Head - US$ 38400-73386/annum
Production Engineer - US$ 3466-10066/annum
Production Operator - US$ 1980- 3869/annum
FLEXIBLE - Multi-skilled, English speaking
- Operates at 3 shifts /day
- Minimal turn-over rate
SEIPISource: SEIPI
0
100
200
300
400
500
600
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
74 80 90
120
160
220
250280
315 307
335 346376
402438
460
435
476500
TH
OU
SA
ND
S
2010:
FIRST TIME > 500K DIRECT JOBS
DIRECT EMPLOYMENT
OF THE INDUSTRY
For every one direct job, 7 indirect jobs are created
SEIPI
Sources: National Statistics Office
Bureau of Export Trade Promotion, DTI
ELECTRONICS EXPORTS 1992 - 2010
-
5
10
15
20
25
30
35
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2.97 3.78
4.89
7.55
10.61
14.98
19.87
25.34 27.07
21.60 23.76
24.17
26.64 27.30
29.60 31
28.50
22.20
31.1
US
$ B
ILL
ION
S
2010: THE HIGHEST IN HISTORY
SEIPI
DESTINATIONS OF
ELECTRONICS EXPORTS
Source: Bureau of Export Trade Promotion, DTI
EXPORTS DESTINATIONS: US/EU - 36%
ASIA - 64%
USA-14%
EUROPE-22%
JAPAN - 15%
OTHER ASIA - 36%CHINA - 13%
SEIPI
INVESTMENTSHISTORICAL: 1992-2010
0.00
0.50
1.00
1.50
2.00
2.50
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
0.04
0.22
1.29
2.16
1.08
1.47
0.670.79
1.24
0.72
0.270.23
0.44
0.78 0.75
1.40
0.420.47
2.27
US
$ B
ILL
ION
S
2010: THE HIGHEST IN HISTORY
• 7TH TIME OVER US$ 1B
SEIPI
ABOUT THE
PHILIPPINE
ELECTRONICS
INDUSTRY
WHERE IT
IS NOW
ELECTRONICS EXPORTS: January 2009 – June 2011
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1,3451,352
1,6201,684
1,8111,948
1,915
2 ,0582 ,250
2 ,1622 ,148
1,8812 ,034
2 ,072
2 ,416
2 ,183
2 ,554
2 ,9042 ,862
2 ,989
3 ,478
2 ,987
2 ,3332 ,256
2 ,1422 ,015
2 ,238
1,9591,886
2 ,211US
$ M
ILLIO
NS
2009 2010 2011
MoM: 17.21%
YoY: -23.89%
CGR: -10.82%
Source: NSO SEIPI
ELECTRONICS IMPORTS: January 2009 – May 2011
Source: NSO
2009 2010 2011
MoM: +0.60%
YoY: +11.24%
CGR: +20.14%
SEIPI
ELECTRONICS INVESTMENTS1992 – Jan-Jun 2011
Jan-Jun 2011: US$ 530M
Source: PEZA
YEAR 2011 PROJECTION
SEIPI
FROM MODERATE TO
FLAT TO NEGATIVE
GROWTH
• Japan Supply Chain
Disruptions
• US/EU Debt Issues
• Middle East/Libya Crisis
Source: SEIPI
ABOUT THE
PHILIPPINE
ELECTRONICS
INDUSTRY
WHERE IT
IS GOING
Several large multinationals
are revisiting their long-term strategies
and are making decisions now.
There’s a growing sentiment to reassess
their geographical footprint in Asia.
BUSINESS ENVIRONMENTAL SCAN
SEIPI
However, it is also clear that China is not the
only player.
The China + + strategy is likewise still in play.
Vietnam is very popular. Malaysia continues to
have the right infrastructure. Indonesia is
gearing up.
The Philippines is in a very good situation to
be part of the action. The timing is now!
SEIPI
BUSINESS ENVIRONMENTAL SCAN
Given this business condition, the
industry is bullish to sustain, if not
further increase the growth of the
semiconductor and electronics in the
Philippines
Moreover, there is growing optimism
driven by the general industry feeling
that the new government of President
Aquino is morally upright and is full of
promise
INDUSTRY OUTLOOK
SEIPI
THE INDUSTRY TARGET
The industry aims to double-up
electronics exports
From US$ 22 Billion in 2009
To US$ 50 Billion in 2016
SEIPI
INCREASING INVESTMENTS
SEIPI
ANNUAL TARGET OF US$ 2 BILLION
PROMOTE THE PHILIPPINES
AND THE GREAT FILIPINO
ELECTRONICS WORKERS
DEVELOPING TECHNOLOGY ROADMAP
SEIPI
MANUFACTURING
PACKAGING, ASSEMBLY, TEST, WIRE
BOARD, RF COMPONENTS, POWER
MANAGEMENT, ETC.
PV/SOLAR
AUTOMOTIVE
ELECTRONICS
MASS DATA
STORAGE
R&D
LOWER COST OF BUSINESS
SEIPI
LOWER COST OF POWER
A CONDUCIVE BUSINESS ENVIRONMENT
SEIPI
• INFRASTRUCTURE
• SECURITY/
PEACE AND ORDER
• NON-DISRUPTIVE
LABOR
• CONTINUE WHAT
HAS BEEN GIVEN
SEIPI
• THE INDUSTRY
TO ACT AS DRIVER
• THE GOVERNMENT
TO ACT AS ENABLER
PUBLIC-PRIVATE PARTNERSHIPTHE ELECTRONICS INDUSTRY WORKING
IN PARTNERSHIP WITH THE GOVERNMENT