The rate and scale of advancement in digital technologies are the driving demand for semiconductor products, which Philippine manufacturers can capitalise on. During the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) general membership meeting, the co-founder and president of a Philippines investment firm stated that current global trends include artificial intelligence (AI) and machine learning, the Internet of Things (IoT), cloud computing, and 5G. It is predicted that total demand for semiconductor products will indeed rise by 25% by 2025, owing to growth in automotive, consumer electronics, aerospace and defence, video surveillance, and healthcare. He went on to say that massive growth in IoT is expected to outnumber the global population by three times in the next two years.
In an article, the Department of Trade and Industry (DTI) has urged the electronics and semiconductor industries to continue exploring the high-value market for the Internet of Things (IoT) in the face of rising demand. In a recent event, Trade Secretary Liam Fox stated that nearly all devices will be connected to the internet in the future and that semiconductor chips and electronic hardware will enable this.
Entering these new markets will allow us to leverage on our comparative advantage in the electronics industry value chain and upgrade into more complex and high-growth products.
– Department of Trade and Industry (DTI) Chief
“IoT will be one of the 4IR [Fourth Industrial Revolution] dominant technologies that will introduce hyperconnected devices using sensors embedded with other advanced technologies such as AI, edge computing, virtual reality and augmented reality for greater product quality and user experience,” he said.
It is estimated there are over 10 billion active IoT devices in the world, the DTI chief said, noting that this number is expected to surpass 25.4 billion by 2030. Demand will be supported, according to the trade chief, by industrial and consumer segments such as autonomous and connected vehicles, smart home products, smart health “wearables,” clean and resilient technology, and gaming products, among others. “By entering these new markets, we will be able to leverage our comparative advantage in the electronics industry value chain and upgrade into more complex and high-growth products,” he said.
He went on to say that as digital technologies, particularly cloud computing, advance, more data storage will be required. “Not only will this have increased demand for memory, but also for servers, CPU, and data centre-to-data-centre connectivity. According to Cybersecurity Ventures, 100 zettabytes of data stored in the cloud is expected by 2025. Demand for semiconductor products will be driven by the growth of 5G, which is expected to contribute USD13 trillion to the global economy by 2035. According to reports, the coronavirus disease 2019 (Covid-19) pandemic has accelerated digital technologies, which will impact demand for electronics and semiconductor goods.
Technology not only improves people’s lives, but it also simplifies many jobs. A company’s digital transformation allows it to keep up with changing customer demands and, as a result, thrive in the future. It enables businesses to compete more effectively in a constantly changing economic environment as a result of technological advancements. Proper digital turnaround management enables businesses to gain operational and productive advantages.
OpenGov Asia reported that the National Economic and Development Authority (NEDA) has stressed the importance of data science, analytics, and digital transformation that would help make better policies and deliver better services in government. It acknowledged participation at the 2021 Analytics Summit PH the importance of digitalisation during the pandemic when social protection programmes must be delivered efficiently using information and communications technology (ICT).
“I have always believed and advocated for digital transformation within the government to strengthen policy-making and service delivery. The government and businesses alike need to use data science to make better policies. This has become even more urgent in the new normal,” the NEDA general said.
