PH targets to improve participation in electronics value chain

MANILA – The Philippines targets to enhance its participation in the electronics and electric global value chain, specifically on wafer technology and research and development, the Department of Trade and Industry (DTI) said Saturday.

DTI Assistant Secretary Allan Gepty said the electronics industry, which specializes in manufacturing assembly, testing, packaging and distribution, already contributes a huge chunk to the country’s exports.

“[A]ng partisipasyon natin diyan ay unang-una sa pag-assemble halimbawa ng mga electronic product at iyong tinatawag nating testing (Our participation there is in the assembly for example of electronic products and what we call testing),” he said at the Saturday News Forum in Quezon City.

“Sa value chain, mayroon dalawang aspeto na tina-target natin -– iyong research and development and then iyong tinatawag nilang production ng wafer technology (In this value chain, we are targeting two other aspects -- research and development and what they call production of wafer technology),” he added.

Gepty said capturing the two additional stages in the value chain would further boost the country’s sector.

“Malaking bagay iyan sa ating electronic industry kasi unang-una po ay nakapag-establish tayo ng niche nga in that particular sector (It would be great for the electronic industry because we already established a niche in that particular sector),” he said.

The said global value chain is primarily composed of raw materials, electronic and electrical components (semiconductor wafers, bare circuit boards, etc.), subassemblies, and final products.

It also includes activities that add value to the final products such as research and development, circuitry design, and software integration, among others.

Gepty said DTI will continue to encourage the establishment of manufacturing and assembly for final products.

“[K]asi kapag final products, siyempre iyong value mas mataas. So, ayaw po natin na kumbaga sa ano, (Of course if we supply final products, the value is higher. We don't want to be limited) to just the supply of components or elements of certain high technology products,” he said. (PNA)