A developing hybrid motor vehicle industry presents itself as a potential huge market for semiconductor and electronics parts makers operating in the Philippines.
This is slowly closing in on the wireless or mobile communications, laptop or notebook personal computers and games market.
Around 50 percent of the global demand is now on a consumer market, observed Arthur Young Jr., President of the Semiconductor and Electronics Industries in the Philippines and chairman of PSI Technologies, Inc.
"Most major end-markets including personal computers, wireless handsets, automotive applications, and wire communications saw second half (of the year 2005) numbers above expectations," he said at the 7th SEIPI CEO Forum.
He added that "hot end markets, and consequently industry growth drivers — wireless handsets, notebooks and digital computers, will continue to grow but at a much slower rate.
Young said the impact of higher oil prices have contributed to slowdown in overall semiconductor growth, and that the full effect of rising energy prices, the aftermath of natural disasters in the US and the reports of decline in consumer confidence have yet to be fully seen.
He added that the fourth quarter is always the make or break quarter for the semiconductor and electronics industries "so we await anxiously the November forecast."
Among the major issues currently bugging the two industries are power (shortage of power, high cost and e-Vat on Power), infrastructure, labor, MS/Phd program, holiday economics, investment promotion, export targets and the Department of Trade and Industry as a "Superbody."
—Edison D. ONG
