Chip industry to pitch gov’t on aid

THE Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) said it needs government help in attracting more investment to the industry, and hopes to make its case to Cabinet officials next month.

“The organization requested to meet with key Cabinet members to initiate its partnership with the new government and discuss the causes of low electronics industry foreign direct investment (FDI), the high production costs, improvements in the Incentives Rationalization component of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, and supply chain issues,” SEIPI said in a statement on Thursday.

SEIPI said the industry remains the Philippines’ top exporter, with shipments in the seven months to July at $26.51 billion, up 1.9% year on year. The semiconductor and electronics industry accounted for 59.25% of all exports during the period.

Asked to comment, SEIPI President Danilo C. Lachica said in a Viber message that the group hopes to meet with government agencies in October.

“We have requests to meet with President Ferdinand R. Marcos, Jr. and cabinet (Department of Trade and Industry, Department of Finance, National Economic and Development Authority). We hope to have meetings in October,” Mr. Lachica said.

Mr. Lachica has said that the industry lost out on over $3 billion worth of investment that elected to locate elsewhere in Asia following the rationalization of incentives under CREATE.  

For 2022, SEIPI has set a 10% growth target. — Revin Mikhael D. Ochave