The electronics and semiconductor industry are projecting a modest recovery in 2025, following a two-year slump.

Semiconductor and Electronics Industry in the Philippines Foundation Inc. (SEIPI) president Dan Lachica said the local sector is expected to grow 1 to 2 percent this year.

“We have contracted for two years in a row. Now we have projected flat growth, but we are optimistic that we might see some modest growth,” Lachica said.

“It could be a single-digit growth, maybe 1 to 2 percent growth, just not flat,” he added.

Tariffs spoil outlook

Lachica said electronics manufacturing services, renewable energy and consumer electronics will be the growth drivers for the industry.

However, tariff challenges remain a concern, particularly the reciprocal tariffs of the United States.

“We need to move up the value chain,” Lachica said, citing the need to attract investments in integrated circuit design and wafer fabrication facilities.