The Philippine semiconductor and electronics industry is forecast headed to strong growth this year due to the anticipated upturn of the global economy, particularly in the United States.

From a 5 percent growth in 2003 valued at $25.47 billion, industry sources said, the local semiconductor and electronics manufacturers could expect at least 10 percent growth this year. This is due to the continuing high demand for wireless products, personal computers, and storage devices in the global market, they said.

Executive Director Ernesto B. Santiago of the Semiconductor and Electronics Industries Association of the Philippines (SEIPI) said, "We are hoping that the economic development of countries will be more stable by this year."

"We see more bullish growth for the semiconductor and electronics industry this year as most economies will be picking up," Santiago added.

According to the International Monetary Fund (IMF) World Economic Outlook, the US, which is the biggest export market of the Philippines, is likely to post a 4.2 percent growth in gross domestic product (GDP) for the last quarter of 2003.

With the global economic recovery underway, industry sources noted that consumer spending in the US, particularly in its information technology (IT) sector, has started to pickup.

SEIPI said that the local electronic firms reported improvements after the government had taken steps to upgrade the needed infrastructure and boost security, particularly in preventing hijackings of electronics shipments.

Electronics account for more than 60 percent of the Philippines’ export earnings.

The Philippines produces 50 percent of the main components in the manufacture of cell phones and laptops.

Texas Instruments processes the digital switch processor (DSP) that is the heart of the Nokia cellular phone in its plant in Baguio City. It is the biggest producer of DSPs in the region and accounts for 50 percent of worldwide DSP production.

The Philippines now supplies 50 percent of world demand for 2.5" hard disk drive (HDD) and 10 percent of the world demand for the 3.5" HDD, thanks to Toshiba Information Equipment (Phils) Inc., which produces one million units of HDDs for notebooks, sub-notebook and mini-notebook personal computers and bridge media.

President Gloria Macapagal-Arroyo strongly condemned the Friday attack by the New Peoples’ Army on a coal-fired power plant in Calaca, Batangas, but vowed to exhaust all possible efforts to find a lasting solution to the insurgency problem, Presidential Spokesman Ignacio Bunye, Jr. said today.

In a radio interview,. Bunye said that the President also condoled with the families of soldiers killed in defending the power plant which is a major source of electric supply in Metro Manila.

The President assured the families of the soldiers who perished the NPA’s "pure act of terrorism," that the Armed Forces of the Philippines (AFP) will do everything possible to give them justice, Bunye said.

Bunye said that the government has shifted to high gear its campaign against terrorists and lawless elements.

However, the Presidential Spokesman said that the Macapagal-Arroyo administration will continue to pursue the peace process with the National Democratic Front (NDF), the political wing of the Communist Party of the Philippines, the NPA and other left-leaning groups.

He quoted Presidential Adviser on the Peace Process (Teresita Quintos) Delez as saying that the government will continue to work in order make the peace process with the communist rebels succeed.

"We will exhaust all possible efforts, in accordance with the Constitution," Bunye said, "to find a lasting solution to the insurgency problem. We cannot promise that a lasting peace could be achieved overnight, but the government will do its best to obtain a final peace settlement."

Bunye said that while a peaceful solution to the insurgency problem is important for our political and economic security, the government will remain vigilant against the communist threat.

"The Armed Forces of the Philippines and the Philippine National Police, together with the local government units, are now on high alert against any possible threat from the New Peoples’ Army," he added.

He said that the AFP and the PNP are also going after NPA members engaged in extortion activities, like collecting Permit to Campaign Tax (PCT) in the countryside, during the election period.

Malacaņang today asserted that the elections should be held as scheduled on May 10, 2004.

Presidential Spokesman Ignacio Bunye said President Gloria Macapagal-Arroyo has maintained that the elections should be held as provided by law "because we have long been preparing for it."

"The sooner we get over this electoral exercise, the better for all of us. If the elections are held (as scheduled), especially if they are clean, peaceful and credible, we will have long-term stability for the government," Bunye said in a radio interview.

Bunye issued the statement in the light of observations that the Supreme Court (SC) might invalidate a contract for the purchase of automated counting machines by the Commission on Elections (Comelec).

News reports also quoted Senate President Franklin Drilon as saying that Congress could pass a law putting off the elections, even as he acknowledged that the Comelec has the power to postpone the entire electoral exercise.

Drilon pointed out however, any postponement should not extend beyond May 30 because the Constitution mandated that "by June 30, there must be a President and a Vice President proclaimed by Congress."

Bunye refused to comment on the possibility that the High Tribunal might issue a ruling voiding the Comelec’s purchase of the automated counting machines, in the process forcing a return to manual tabulation of the ballots.

The Palace official clarified that it would be speculative to venture a statement on the issue, adding that it is better to simply wait for the SC decision.