According to the Philippines Import Data, Integrated circuits were primarily imported from China, United States, Chinese Taipei and United States. The integrated circuit market is the fastest growing market in China.

As per the China Export Data, the integrated Circuit market in China increased in the month of July 2021. The integrated circuit markets of China is driven by automotive electronics, industrial automation, Internet of things, communication equipment etc.

The value of imports of commodity of electronic integrated circuits and micro assemblies totaled to Philippines was $13.2billion in 2020. The import of the integrated circuits by Philippines accounted for 14.6% of the total import flow to the country.

The share of commodity integrated circuits to Philippines increased in the year 2020. The imports reached 51% of the total imports in 2020. The share of purchase of integrated circuits to Philippines increased in 2020 as compared to the previous year.

The Philippines owes the semiconductor and electronic manufacturing industry, as the biggest factor of the economic growth. The industry employs around 3.2 million direct and indirect workers. They have several big and multinational companies with the workforce encompassing engineers and designers to perform research and development and design work.

The majority of semi conductors and electronics firms in the country are concentrated around Metro Manila, Northern and Central Luzon, and Cebu and are majority into IC packaging, PCB assembly and full product assembly.

Despite having many home grown electronic manufacturers, the locally produced electronic components do not suffice the needs and almost 80% of the components are sourced from other countries mainly from China.

Integrated circuits market is facing challenges like introduction from CITIRA. The implementation of this reform will affect the competitiveness of locators in Philippines, as all the major operating costs are really high in the acumen.

Supply chain management is another issue faced by this industry, as most electronic parts such as Integrated circuits and wafers are imported rather than sourced locally. Other issues like permit issuance, inconsistent surety bond computations affect the performance of this industry.

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