PHILIPPINE electronics exports are expected to grow 10 percent this year to as much as $54 billion, driven by continued demand from artificial intelligence (AI) and data centers, an industry group said.
Semiconductor and Electronics Industries in the Philippines Foundation Inc. (Seipi) president Dan Lachica said the group raised its 2026 forecast from an initial flat growth projection following the industry’s stronger-than-expected performance.
In 2025, electronics exports surged 16 percent to $49.64 billion from 2024’s $42.75 billion in 2024, exceeding Seipi’s initial forecast of 5 percent growth.
“We honestly did not expect 16 percent,” Lachica said, citing geopolitical conflicts and supply chain disruptions that had clouded the industry’s outlook.
Based on the revised forecast, electronics exports could reach $53 to $54 billion this year.
Lachica said growth would be supported mainly by demand for equipment used in AI and data centers, particularly servers and networking systems.
Automotive electronics and telecommunications are also expected to contribute.
While the Philippines does not manufacture chips specifically for AI, local companies produce components and equipment that support AI infrastructure and data centers, Lachica said.
Electronics and semiconductor exports grew more than 10 percent in the first half, with Hong Kong, the United States, and China among the top markets.
The Philippines accounted for 5 percent of the global semiconductor market in 2025, but its share of the electronics manufacturing services (EMS) market was only about 1 percent, according to Lachica.
He said the upcoming Philippine Semiconductor and Electronics Industry Roadmap would seek to expand the country’s share of the global EMS market and move the industry into higher-value activities.
Seipi is also working with the Department of Trade and Industry on a wafer laboratory project aimed at demonstrating the country’s capability in wafer fabrication.
Wafer manufacturing is the process of creating thin, flat discs of semiconductor material — usually ultra-pure silicon — that serve as the base substrates for microchips and integrated circuits used in all modern electronic devices.
The Philippines is strong in semiconductor assembly, testing and packaging, and is developing its integrated circuit design industry. However, Lachica said wafer fabrication remains a major missing link in the domestic semiconductor supply chain.
Developing a proof of concept could help attract semiconductor manufacturers and change perceptions that the Philippines is mainly a location for back-end assembly and testing, he noted.
Despite expectations that global semiconductor growth could eventually slow, Lachica said AI demand has yet to plateau, while automotive electronics, telecommunications and other technology segments continue to offer growth opportunities.
