Electronics industry landscape
The electronics industry in the Philippines comprises semiconductor manufacturing services (SMS), 73 percent of the market, and electronics manufacturing services (EMS). The industry is focused primarily on the assembly, testing, packaging, and distribution of various electronic goods. In earlier years, it was dominated by international manufacturers that had moved their operations to the Philippines because of cheaper labor and lower production costs. Today, nearly 600 establishments in the sector are found within the Philippine Economic Zone Authority (PEZA) locations.The major products within the electronics manufacturing industry are semiconductors and electronic data processing products such as hard disk drives. In 2022, semiconductors accounted for the highest share of the total electronic products exported from the Philippines. They were primarily exported to China, Hong Kong, and Singapore. Also known as integrated circuits and microchips, semiconductors are used in many electrical appliances and consumer electronics such as smartphones and televisions. To produce semiconductors, the Philippines also imports electronic goods such as wafers from China, Korea, and Taiwan, among others. In addition, the sector also produces final products and product-specific parts in the consumer electronics, medical devices, office equipment, and automotive electronics sectors.