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THE PHILIPPINE ICTTHE GREEN ITErnie SantiagoPresidentThe Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI)
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SEIPI
1.THE ELECTRONICS INDUSTRY
2.THE IT/BPOINDUSTRY
A SNAPSHOT:THE PHILIPPINE ICT
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SEIPI
THEPHILIPPINE
ELECTRONICS INDUSTRY
- THE DRIVER OF PHILIPPINE ECONOMY
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SEIPISources : DTI/NSO
….FROM COCONUT CHIPS TO MICROCHIPS
Agro-Based 49%
Mineral Products -18%
ELECTRONICS - 3%Garments - 7%
Other ManufacturedProducts – 10%
Forest Products - 10%Others - 2%
1970
ELECTRONICS -58%
Garments and Textiles - 6%
Machinery and Transport - 4.4%
Wearables - 0.16%Food - 2.9%
Motor Vehicles and Parts - 1.74%Home Furnishings - 1%
Marine Products - 1%Giftwares - 0.45%
Construction Materials - 0.49%
Organic Products - 0.18%
Mineral Products - 2.1%
Others - 13%
2010
Sources : DTI/NSO
CHANGING FACE OF PHILIPPINE EXPORTS
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SEIPI
8 OUT OF THE WORLD’S TOP 20 CHIPMAKERSARE OPERATING IN THE PHILIPPINES
TIPI Philips Fairchild
Analog Sanyo On Semi Rohm
Source: SEIPI
THE TOP CHIPMAKERS
Samsung
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SEIPI
THE WORLD’S TOP ELECTRONICS FIRMS
FOUR OF THE LARGEST HDD PRODUCERS ARE IN THE PHILIPPINES
Hitachi Toshiba Fujitsu NEC
CEBU MITSUMI – employs >20K, biggest employer in the Philippines; manufactures computer peripherals and components such as CD-R, CD-RW, optical pick up
Source: SEIPI
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SEIPI
LEXMARK – produces 40 million printheads/year
AMKOR – employs 8,000 people for its IC packaging with 400 formats, from
leadframeto BGA solutions
THE WORLD’S TOP ELECTRONICS FIRMS
Source: SEIPI
EPSON – employs 5,000, one of the top 3 terminal printer production base of global Epson group, producing its 10 millionth printer
SUNPOWER – produces solar panels
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SEIPI
HOMEGROWN SMS & EMSFIRMS
… and a cluster of homegrown ODMs time recorder, avr, power supplies, alarm systems, electronic ballasts, testers, GPS tracking, automated toll collection, others
IMI Ionics PSI Fastech Team
Source: SEIPI SEIPI
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SEIPI
A CRITICAL MASS OF GLOBAL PLAYERS
Source: SEIPI
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SEIPI
NO. OF FIRMS: 959 COMPANIES
THE COMPANIES IN THE ELECTRONICS INDUSTRY
NATIONALITY:
- 72% Foreign- 28% Filipino
Philippines28%Malaysia
2%Singapore
2%
Taiwan4%
Europe7%
USA9%
Korea10%
Others8%
Japan30%
Sources: BOI/PEZA
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SEIPI
DIRECT EMPLOYMENT OF THE INDUSTRY
For every one direct job, 7 indirect jobs are created
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SEIPI
INVESTMENTSHISTORICAL: 1992-2010
0.00
0.50
1.00
1.50
2.00
2.50
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
0.040.22
1.29
2.16
1.08
1.47
0.670.79
1.24
0.72
0.270.230.44
0.78 0.75
1.40
0.420.47
2.27
US$
BIL
LIO
NS
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SEIPI
Sources: National Statistics OfficeBureau of Export Trade Promotion, DTI
ELECTRONICS EXPORTS 1992 - 2010
-
5
10
15
20
25
30
35
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2.97 3.78
4.89 7.55
10.61
14.98
19.87
25.34 27.07
21.60 23.76
24.17 26.64
27.30 29.60 31
28.50
22.20
31.10
US$
BIL
LIO
NS
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SEIPI
THEIT/BPO
INDUSTRY-THE PHILIPPINES’FASTEST GROWING
INDUSTRY
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SEIPI
Back-office and KPO:• No. of service providers: 96 • Total full-time employees: 101,000• Revenues 2009: US$1.6 Billion• Revenue Growth: 35% vs. year ago
Contact Center• Major contact centers in the Philippines: Around 300• Total full-time employees: 344,000• Revenue 2009: US$6.1 Billion• Revenue growth from 2008: 21%
A PICTURE OF THE PHILIPPINE IT/BPO INDUSTRY
Sources: Business Process Association of the Philippines
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SEIPI
Animation & Game Development• 20-year wealth of experience in the field• Capabilities in 2D, 3D, Maya, 3D Max, Medical/Educ Graphics & Animation• 2010 projected global market demand of US$142 million
Engineering Design• Over 75,000 licensed professionals• 40,000 graduates of engineering courses annually (CAD-enabled)• Internationally-accepted engineering standards
Software Development•Number of development companies: 135 (export only)•Total IT professionals: 44,000•Revenues in 2009: US$ 725 million•Capabilities in applications development and maintenance; IT operations and infrastructure; business analysis, project management, education
A PICTURE OF THE PHILIPPINE IT/BPO INDUSTRY
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SEIPI
HR Outsourcing Medical Services Outsourcing
Legal Process Outsourcing
Engineering Services Outsourcing Creative Services Outsourcing
A CRITICAL MASS OF GLOBAL PLAYERS
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SEIPI
Maintenance, Repair, Overhaul ServicesClinical Research Outsourcing
A CRITICAL MASS OF GLOBAL PLAYERS
Voice – Based Services Suppliers
Homegrown Suppliers
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SEIPI
Banking, Financial Services and Insurance
NASSCOM’S Top BPOs Shared Service Centers/Captives
IT and Software Services
A CRITICAL MASS OF GLOBAL PLAYERS
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SEIPI
Philippine IT-BPO industry size2006-2010; US$ Billion
x% YoY Growth
THE PHILIPPINE IT/BPOINDUSTRY SIZE
~50%
~26%
~14%
~20%
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SEIPI
THEPHILIPPINE
GREENIT
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SEIPI
CHALLENGES TO THE WORLD
WORLDWIDE ECONOMIC SLOW DOWN
SURGING OIL PRICE
RAW MATERIALPRICES
INFLATION
CURRENCYFLUCTUATION
MARKET VOLATILITY
UNCERTAINTY & RISK
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SEIPI
POLLUTION, GLOBAL WARMING...
And more... you name it... it’s there
FOODSHORTAGE
RESOURCES SCARCITY
CHALLENGES TO THE WORLD
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SEIPI
Something has to be done...
THE PHILIPPINE ELECTRONICS INDUSTRYTHE PHILIPPINE ICT INDUSTRY
THE TWO LEADING INDUSTRIES IN THE PHILIPPINES
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SEIPI
Something has to be done...
The ERG Initiative Dr. K.B. Chan
It is one unit of energy –to move one gram of mass
ERG, in physics, is basic...
Source: SEIPI/HKEIAAsia Electronics Forum
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SEIPI
ENERGY
OilCoal
Natural gas
Source: SEIPI/HKEIAAsia Electronics Forum
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SEIPI
RESOURCES
Water
Minerals & commodities
Food
and more…Source: SEIPI/HKEIA
Asia Electronics Forum
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SEIPI
GREEN
Preserve the environment
and more…
Waste treatment Emission
control
Source: SEIPI/HKEIAAsia Electronics Forum
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SEIPI
We, the electronics and ICT industry,
do have our social responsibility...
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SEIPI
EVERY YEAR, WE MAKE :
> 200 MILLION PCs
> 1 BILLION HAND PHONES
> 60 MILLION TVS
LARGEST VOLUME PRODUCTION
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SEIPI
1. High Consumption of ENERGY: Manufacturing process
Silicon waferSoldering24 hr Air con
Products – Stand by Shipment by air
OUR NEGATIVE CONTRIBUTION TO ERG
Source: SEIPI
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SEIPI
2. Huge Consumption for RESOURCES: Fast and many
new products Complicated
manufacturing process
Use new materials Labor intensive
OUR NEGATIVE CONTRIBUTION TO ERG
Source: SEIPI
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SEIPI
3. NON GREEN - Generates large amount of Waste & Toxic
• Accelerated product obsolescence
• Use toxic materials• Indiscriminate dumping
OUR NEGATIVE CONTRIBUTION TO ERG
Source: SEIPI
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SEIPI
We, the Philippine electronics and ICT industry must take the leadership…
Source: SEIPI
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SEIPI
Lean & Green Manufacturing
Eco-DesignCradle to cradle
Source: SEIPI
THE PHILIPPINE ELECTRONICS & ICT INDUSTRY
FIRST GOOD HOUSEKEEPIN
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SEIPI
1. Re-educate: new culture new mind set new life style
THE PHILIPPINE ELECTRONICS & ICT INDUSTRY
ADOPTING “6R” CULTURE!
2.Re-design:productenergy consumptionresources usagerecycling
Source: SEIPI
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SEIPI
3.Reduce:usagewaste
4.Recycle to conserve
THE PHILIPPINE ELECTRONICS & ICT INDUSTRY
ADOPTING “6R” CULTURE!
Source: SEIPI
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SEIPI
5.Reuse:• extend service life
6.Re-invent• innovation• creativity• out of the box
THE PHILIPPINE ELECTRONICS & ICT INDUSTRY
ADOPTING “6R” CULTURE!
Source: SEIPI
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SEIPI
Comply with all ERP regulations.
WEEE
REACHISO 14000
THE PHILIPPINE ELECTRONICS & ICT INDUSTRY
A GOOD GLOBAL CITIZEN
Source: SEIPI
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SEIPI
OUR TECHNOLOGY CAN HELPTO DEVELOP ALTERNATIVE AND RENEWABLE ENERGY!
• Solar cells• Bio-fuel• Wind power
Source: SEIPI
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SEIPI
PHILIPPINES: MOVING FORWARD
1. Promotion of Green IT in the Philippines
2. Creation of Philippine Green ICT Alliance
3. Collaboration with Asian Green IT Group on the implementation of Green IT
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SEIPI
1. Stage Philippine Green ICT Summit to be held in time with PSECE in June 20121.1 This will be a 2 day Exhibit and Training Seminars1.2 Commitment support received from Asian Green IT1.3 Japan GIPC to exhibit/JEITA to dispatch experts on:
- Energy savings in manufacturing plants- Data centers- Power electronics- Building and home energy management
systems- Alternative Energy
PROMOTION OF GREEN IT IN PHILIPPINES
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SEIPI
2. Creation of Philippine Green ICT Alliance2.1 DOST:PCIERD/ICTO2.2 DOE2.3 DTI/PEZA2.4 COMSTE2.5 PHILIPPINE GREEN BUILDING COUNCIL2.6 ERDT/CECC2.7 SEIPI and BPAP
PROMOTION OF GREEN IT IN PHILIPPINES
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SEIPI
PROMOTION OF GREEN IT IN PHILIPPINES
3. Collaboration with Asian Green IT3.1 GIPC/JEITA Expert Sessions3.2 GICT Survey Study and Analysis3.3 GICT Case Studies/Solutions in Japan and
Asian Countries3.4 GICT R & D Innovations (University/Industry)3.5 Green ICT Panel Forum for penetration and
promotion
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SEIPI
It is our duty to build a better and sustainable world!