Cebu ecozone (File photo)
MANILA – The chair of the House Ways and Means Committee on Monday urged the semiconductor and electronics industry of the Philippines to draw up contingencies and ways to capitalize on supply disruptions elsewhere as leading electronics manufacturers in China face shutdowns related to rising coronavirus disease (Covid-19) cases.
Albay Rep. Joey Salceda asked electronics manufacturing companies to have contingencies so that the production of electronics and semiconductors would not be halted.
He cited the case of Apple Inc’s prime supplier Foxconn Technology Group at two of its factories in eastern China’s Kunshan halting operations after new Covid-19 cases were reported on site.
“I am asking the PEZA (Philippine Economic Zone Authority) and the Semiconductors and Electronics Industry of the Philippines, Inc., to figure out how we can make sure that there are no shutdowns due to Covid, how we can use these global trends as an opportunity to market the Philippines as a more business-friendly destination, and how we can meet the increased demand for Philippine Semicon products as a result of global supply issues,” Salceda said in a statement.
He said the prices of electronics and semiconductors are very likely to go up if the China shutdowns persist, adding that it is an "earning opportunity" for the country's export enterprises.
“For the past several months, places like China and Vietnam, which suffered far fewer Covid-19 cases during the time, were earning dollars instead of our companies because our own manufacturers faced shutdowns. Now that the situation is reversed, it is time for us to earn our own dollars from increased demand and constrained supply,” Salceda said.
He said this is a way to narrow the Philippines' trade deficit also, which skyrocketed due to spiking demand from economic recovery,” Salceda adds.
The electronics and semiconductor industry is the largest export industry in the Philippines, accounting for some USD2.8 billion in export value.
“We should also emphasize that a diversified value chain is always a good hedge against supply chain risks. So, it’s a good pitch for the Philippines, especially under the CREATE (Corporate Income Tax and Incentives Reform Act) Law,” he said. (PNA)
