To enhance and promote the Philippines competitive advantages and growth opportunities in electronics manufacturing and technology business through Training, Research and Development, Advocacy, Information, Networking and Services (TRAINS).
2. PRESENTATION OUTLINE:
SEIPI
The Philippine
Electronics Industry
Performance
R&D Activities
Gearing Up Towards An
R&D-Driven Industry
3. Its membership include leading global players
like Continental Temic, Toshiba, BAG Electronics,
Epson, Amkor, Fairchild Semiconductor, Cebu
Mitsumi, Knowles, Texas Instruments, HGST,
Ibiden, Samsung Electro-mechanics Phils., Corp.,
Fujitsu Ten, Analog Devices, Cypress, Moog, ON
Semi, Maxim, ROHM, Tsukiden, P. Imes, PSMC
Phils., Inc., STMicroelectronics, Filipino
companies such as IMI, Ionics and Fastech
Synergy.
CRITICAL MASS OF GLOBAL PLAYERS
The largest organization of
300 foreign and Filipino
semiconductor and
electronics companies in the
Philippines.
ABOUT SEIPI
Semiconductor and Electronics Industries in the Philippines Foundation Inc.
4. VISION:
To make the Philippines a globally
competitive business environment for
semiconductor and electronics technology
VALUES:
Service
Excellence
Innovation
Promotion
Integrity
MISSION:
To enhance and promote the
Philippines competitive advantages
and growth opportunities in
electronics manufacturing and
technology business through Training,
Research and Development, Advocacy,
Information, Networking and Services
(TRAINS).
6. 則 The industry emerged in the 1970s when industrialized nations moved their production
facilities to cost-competitive developing countries to control rising production costs.
則 The sector eventually became the largest foreign exchange earner of the Philippines,
surpassing traditional exports such as coconut and sugar.
197
0
201
6 Source: PSA,
2016
NON-ELECTRONICS,
49%
ELECTRONICS, 51%
7. SECTORAL COVERAGE
Source: PSA
2017
The Philippines is home to about 420
MNCs
and Filipino-owned semiconductor and
electronics companies.
Philippine electronics companies engage in both
semiconductors manufacturing service (SMS)
and electronics manufacturing service (EMS).
SMS refers to the production of electronics
devices semiconductors and components
from design to assembly. EMS involves the
manufacture of electronics products for other
companies on a contract basis, including circuit
boards, electronics assemblies, and complete
systems.
Sub-sector Major Players
Semiconductor and
other components
Texas Instruments, ON
Semiconductor, Amkor,
Analog Devices, NXP
Electronic Data
Processing
(EDP)
Equipment
Western Digital Company
(HGST), Toshiba
andSamsung
O鍖ce Equipment Funai (Lexmark), Canon,
Brother and Epson
Telecommunication Cirtek, ATEC
Communications
and
Radar
Murata
Control and
Instrumentation
Maxim
Medical and
Industrial
Microsemi, IMI and Sonion
Automotive
Electronics
Continental Temic,
FujitsuTen,
STMicroelectronics, IMI
Consumer
Electronics
Bag Electronics, Ionics
IC Design Analog Devices, ROHM,
Kyocera and Xinyx
Semiconductors
73%
Electronic Data Processing,18.4%
Control and Instrumentation, 2.3%
Office Equipment, 2.1%
Communication/ Radar, 2.0%
Telecommunication, 1.5%
Consumer Electronics, 1.0%
Medical/ Industrial Instrumentation, 0.18%
Automotive Electronics, 0.24%
8. NEW
MANUFACTURING
TECHNOLOGY,
PROCESS
EFFICIENCIES,
TEST DEVELOPMENT
ASSEMBLY EFFICIENCIES
INVENTORY
MANAGEMENT
CUSTOMER
SERVICE
RESEARCH AND
DEVELOPMENT IN MATERIALS
SCIENCE,
NEW ALGORITHMS,
EMBEDDED SOFTWARE DEVT
Software
Silicon Technology
Application
Wafer Package
Selection/
Application
R&D
Produc Ramp To
tization Production
Distri
butio
n
Fab Technology
Product
MARKETING RESEARCH
STRATEGY AND
DEVELOPMENT SYSTEMS
INTEGRATION
PRE-MANUFACTURING
DESIGN, TEST DEVELOPMENT
Product Or
Component
Design
Shipment
Distribution
Direct Order
Fulfillment
SEMICONDUCTOR MANUFACTURING SERVICE (SMS)
ELECTRONICS MANUFACTURING SERVICE (EMS)
Production Logistics
Management
Sourcing/strategic
Purchasing
Procurement
Warehousing
Kitting
PCB Assembly
Component
Assembly
Full System
Assembly
Cable/harness
Assembly
After Sales
Service
Repair and
Warranty
Other After
Sales Support
SEMICONDUCTOR
DESIGN
1 FOUNDRY
OPERATIONS
PACKAGING/PRODUCT
DESIGN
PACKAGING DESIGN, TEST
DEVELOPMENT, PRE-
MANUFACTURING
2 3
OUTSOURCED
EMS
LOGISTICS MANAGEMENT
ASSEMBLY AND FINAL
TESTING SHIPMENT AND
DISTRIBUTION
6
OUTSOURCED
SMS
4
OEM R&D
MARKETING
5
CUSTOMER
SERVICE
7
The Philippine electronics
industrys capabilities are at #
3 of SMS and # 6 of EMS
9. TOP 10 EXPORT DESTINATIONS
Source: PSA,
July2017
USA 13%
HK 22%
REST OFTHEWORLD:
11%
CHINA 12%
KOREA 3%
JAPAN 10%
NETHERLANDS 4%
GERMANY 6%
TAIWAN 6%
THAILAND 4%
SINGAPORE 9%
10. TOP 10 COUNTRIES OF IMPORT ORIGIN
USA 10%
TAIWAN 14% HK 7%
REST OFTHEWORLD:
5%
CHINA 17%
KOREA 14%
JAPAN 13%
THAILAND 3% VIETNAM 5%
MALAYSIA 3%
SINGAPORE 10%
Source: PSA,
July2017
12. INDUSTRY PERFORMANCE FOR 2016
INVESTMENTS
Accounted for PhP 49.349 Million FDI
EMPLOYMENT
Employed 3.2 million workers
TAXES
Paid an estimated PHP 48 billion in taxes
EXPORTS - 50.3% of total exports, at US$ 28.9 billion
IMPORTS - 26.6% of total imports, at US$ 21.9 billion
14. PHILIPPINE
ELECTRONICS
INDUSTRY R&D
INITIATIVES
There are 8 Companies
who have existing R&D
activities in the country
DISCIPLINES / FIELDS OF
EXPERTISE
Electronics and Electrical
Engineers
Mechanical and Material
Engineers
Test Development Engineers
Software Engineers
Application Engineers
Circuit and PCB Designers
Optics Engineer
15. CURRENT R&D ACTIVITIES IN THE PHILIPPINES INVOLVE:
Signal processing and conversion
RF communications
Product development
DVT/EVT/PVT
Prototyping
Platform development on automotive cameras, motor
drivers, power modules, NFCs etc.)
Small precision assembly (bare die and stacked
die, 鍖ip chip technology)
Optoelectronics
Mobile manufacturing robots for automation
Energy Management System
Data Security
16. KEY SUCCESS FACTORS
Steady pool of Skilled Engineers
1. Continuous professional development for engineers
2. High retention of employees
3. Competitive compensation package
Good relationship with company headquarters (HQs).
Aggressive leadership and direction to localize R&D
Milestone-based progress monitoring
Number of patents
o Example of awarded patents:
1. Switching Regulator with Integrated Resonant Circuit For Ripple
Filtering
2. Vertical Magnetic Isolation Barrier Wall in a customized module
lead frame
3. Resistor Controlled Timer Circuit with Gain Ranging
4. Method and Apparatus for Creating a Uniform and Stable Magnetic
Field for Stimulating Magneto-Resistive Devices
Government Support
17. GOVERNMENT SUPPORT
則 Advanced Device and Materials Testing
Laboratory (ADMATEL)
o Equipped with state-of-the-art analytical
equipment for
failure analysis and materials characterization
o Reduces the delays and costs of having products tested
abroad
則 Philippine Electronics Product Development
Center (EPDC)
o Realizes electronic product designs from theory to
working PCB prototypes
o Assured reliability of products as they are exposed and
tested in a 10-m semi-anechoic chamber for EMC
testing
則 Philippine Institute for Integrated Circuits
(PIIC)
o An extension and supporting facility enhancing
incubation and innovation schemes and cross-cutting
researchprojects
o Bridges the academe, industry and government
together
則 Training for Work Scholarship
Program thru TESDA
則 PATHS (Prouduct and Technology
Holistic Strategy)
19. LEVEL OF TECHNOLOGY
In terms of technology and business operations, the electronics industry of
the country is strong in manufacturing assembly and test.
While this has been true for the past three (3) decades, the need to move
gradually towards the higher end of the value chain (i.e. R&D and IC Design) is
being expressed. This is just one of the factors that will sustain the countrys
competitiveness.
VS
20. PRODUCT AND TECHNOLOGY HOLISTIC STRATEGY (PATHS)
An overall industry strategy necessary to guide the industry
players on how to move up the value chain and what speci鍖c
products and technologies the semiconductor and electronics
industry must pursue in the growing sectors in the next 鍖ve years;
and identify economic and political solutions that will address
the requirements of the identi鍖ed products and technologies
OBJECTIVES
1. Identify global technology trends in the semiconductor and
electronics industry.
2. Based on the semiconductor and electronics technology trends,
determine the strategic and specific products
and technologies that the Philippines should focus on in the
following sectors:
a. Semiconductor Manufacturing Service (SMS)
b. Electronics Manufacturing Service (EMS)
3. Review the current country factor resources and state-of-the-art technological capabilities and the business
operating environment of the electronics and other industries and the country vis--vis the new product lines.
4. Given the specific products and technologies to pursue in the SMS and EMS sectors, identify the necessary
and desired industry resources, policies, supply chain and operating environment that will support the thrust
for existing firms to expand into or attract new investors to locate in the Philippines.
5. Formulate a product and technology strategic roadmap to close the gap between the current and the desired
state of the countrys electronic industry identifying specific action programs for marketing, physical facilities,
skills, policy, etc. that are needed to successfully resurrect and grow the Philippine electronics industry.