RP semiconductor exports outpace global growth rate

Trade and Industry Secretary Juan B. Santos expressed satisfaction yesterday over the positive growth in the country’s electronic shipments, particularly the growth of semiconductor exports, which outperformed worldwide sales trends and projections.

Figures from US-based Semiconductor Industry Association (SIA) showed that year-on-year global sales of semiconductors were up 6.9 percent to $18.2 billion from $17 billion in April 2004.

However, Philippine exports of semiconductors outpaced the overall global performance, as the sector’s exports grew year-on-year by 17.92 percent last April, better than the global sales in the same period.

SIA is bullish that the global sales of electronic products would grow by six percent this year, on to an annual compounded growth rate of 9.8 percent through 2008.

Key drivers of semiconductor growth in April include the increase in demand for cellular telephones, personal computers, digital televisions, and digital cameras.

This year, cell phone sales is expected to grow by 13 percent, personal computer sales by 10 percent, digital TV sales by 65 percent (from the forecast of 50 percent), and digital cameras to 15 percent (from the forecast of six percent).

"Our semiconductor exports have grown more than global trends, this is certainly a good sign for our exports. Semiconductor devices, together with other electronic products, are the main drivers of our exports. It accounts for about 65 percent of our total exports," Santos said.

Other products such as wiring harness, transportation equipment, and coconut oil also showed improvements in the April 2005 export figures.

Japan remains as the top market with 18.59 percent share of total exports. The US comes in second with 16.43 percent; the Netherlands is third with 10.40 percent; and China is fourth with 9.16 percent.

Exports to all top four markets grew, with China showing the fastest growth of 109.36 percent.