The Philippine electronics industry is raising its 2026 growth forecast to 10 percent as artificial intelligence, data centers and the technologies powering them drive a fresh wave of demand, putting exports on track to break the USD50-billion mark for the first time.
Dan Lachica, president of the Semiconductor and Electronics Industries in the Philippines Foundation, said the industry initially expected flat growth this year but revised its outlook after electronics exports jumped 16 percent in 2025.
At an export base of about USD49.6 billion, 10-percent growth would lift shipments to roughly USD53 billion to USD54 billion.
“It’s safe to say that 10 percent growth is primarily driven by data server requirements and AI,” Lachica said.
The opportunity is significant even though the Philippines does not manufacture AI chips. Local manufacturers instead supply the infrastructure behind the AI boom, including networking, switching and power-control equipment used by data centers.
That gives the industry a potentially lucrative position in the AI supply chain, but also exposes it to the risk that investment in AI infrastructure could eventually cool.
Lachica remains bullish, saying AI development is still far from its peak, with technology advancing rapidly and creating new applications.
Automotive electronics and telecommunications are also adding momentum, broadening the industry’s growth base beyond AI.
The bigger challenge is capturing more value from the global semiconductor and electronics supply chain. The Philippines accounts for about 5 percent of global semiconductor activity but only around 1 percent of the electronics manufacturing services market.
SEIPI’s forthcoming electronics roadmap aims to close that gap, alongside plans to revive a proposed lab-scale wafer fabrication facility with the Department of Science and Technology in 2027.
For Lachica, the goal is clear. The Philippines must move beyond its traditional back-end assembly, testing and packaging role and develop capabilities that could eventually reduce its reliance on imported wafers and strengthen the country’s place in a rapidly evolving semiconductor chain.
AI demand pushes Philippine electronics exports higher
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