Philippine semiconductor exports may reach USD 50B this year

Philippine export receipts of semiconductor and electronic products are expected to rise to a record USD 50 billion this year despite global trade uncertainties and an ongoing conflict in the Middle East, the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) said.

“At least we would breach USD 50 billion,” SEIPI President Danilo C. Lachica told reporters on the sidelines of the ASEAN Business Environment Forum on Wednesday.

For 2026, SEIPI projects semiconductor and electronics exports to grow by a 5% this year.

SEIPI data showed that electronics exports rose by 16.11% to USD 49.64 billion in 2025 from USD 42.75 billion in 2024.

“Last year was close to a record. It’s USD 20 million short of our 2022 record,” Mr. Lachica said.

“Of course, there are geopolitical concerns, such as the Iran war and the US tariffs,” he noted.

Mr. Lachica said the Iran war will unlikely have a significant effect on the industry’s export growth, noting that the Middle East is not a key market for the Philippines’ electronics and semiconductor products.

“So far, we don’t see it affecting demand, but then again, we’re at the edge of our seats,” he said.

Outside North America and Asia, the country’s top destinations for electronics exports include Germany and the Netherlands, he noted.

Despite this, Mr. Lachica said that ongoing tensions in the Middle East may drive up operating costs for the industry.

“The cost of fuel, transportation, and energy will have eventually an impact,” he added.

“Right now, only the cost of operations will increase, but it’s still not disrupting the supply chain,” Mr. Lachica said in mixed English and Filipino.

Global fuel shipments are currently disrupted amid the closure of the Strait of Hormuz, where about 20% of the world’s oil and liquefied natural gas pass through, amid the ongoing conflict involving the United States, Israel, and Iran.

Mr. Lachica said the uncertainty surrounding US tariff policies still poses a risk to the industry this year.

US President Donald J. Trump in February announced that he will be imposing a new 15% duty on US imports. This came after the US Supreme Court earlier ruled that he had exceeded his authority when he imposed the reciprocal tariffs.

Finance Secretary Frederick D. Go earlier said that the majority of the country’s exports — including semiconductors and key agricultural products — were already exempted before the US Supreme Court’s ruling.

Mr. Lachica said the industry is still shielded from the United States’ 25% tariff on the exports of artificial intelligence (AI) chips.

“The good news is we don’t produce AI chips itself. What we produce are peripherals like power devices and controllers supporting the AI infrastructure,” he said.

Mr. Trump in January slapped a 25% tariff on certain semiconductors, particularly on advanced computing chips, citing national security and economic risks.

Mr. Lachica also said that recent electronic and semiconductor investors in the Philippines are focusing on expansion, and less on new investments.

He noted that demand mainly centered on automotives, components, and AI peripherals.

Data from the Philippine Statistics Authority showed that exports of electronic products grew by 17% to USD 46 billion in 2025, while semiconductor exports rose by 18.7% to USD 34.62 billion. — Beatriz Marie D. Cruz, Reporter