THE Semiconductor and Electronics Industries of the Philippines Inc. (SEIPI) said the sector is likely not to meet its 5 percent growth projection for the year as the group has practically lost the first quarter of the year.
Dan Lachica, SEIPI president, said members are keeping the skeleton staffing ranging from 10 to 40 percent and correspondingly reduced production in the same scale.
“(It’s) Not as much as the Taal eruption but this pandemic will dampen the projection… because we don’t know when this pandemic will end,” Lachica said.
The Luzon-wide enhanced community quarantine as a control measure for the spread of the coronavirus diseases 2019 has scaled down production of companies to the extent they can serve orders. Some companies located in Calabarzon have also shut down operations for at least two days in January following the eruption of Taal Volcano.
According to Lachica, SEIPI in January revised upwards its export forecast from a range of zero to 3 percent growth to as much as 5 percent increase as demand picked up.
“We won’t hit 5 percent (growth) but hopnow efully it won’t be flat or negative… it depends on how soon we can ramp up operations,” said Lachica said.
He added: “We’ve lost one quarter… (just when) demand (was) building up… When we restart, it would be driven by demand. But there is a lot of backlog.
Lachica said SEIPI members are doing what they can not to lay off workers, even as he stressed the economic stimulus requested by the community is not quite defined
He said issues like the inconsistencies in the implementation at checkpoints and the delay in the release of cargoes at the ports should also be addressed.
He said SEIPI is working with a technical working group headed by Socio-Economic Planning Secretary Ernesto Pernia, Trade Secretary Ramon Lopez and Presidential Adviser Joey Concepcion and composed of business leaders in developing rebuilding programs post COVID.
Lachica said SEIPI members are planning beyond, when the quarantine is lifted to ensure members are ready to resume full operations.
He said for now, the priority is focused on making intermediate products needed for medical devices and equipment.
However, 70 percent of the group’s exports are in the form of semiconductor products like integrated circuits and chips and the 30 percent are in the form of printed circuit board assemblies for medical, automotive and telecommunication electronics.
