2013 ISSUE 1

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DIGEST EDITORIAL GROUP

Dan Lachica SEIPI President Editor-in-Chief

Contributors:

Jaffy Jurado

Business Lead Public Policy Advocacy

Katrina Magcalayo

Business Lead Global Competitiveness

Elainne Platon Business Lead

Information and Networking

GMM Photo Contributors:

Jun Dumaguing, Helpdesk, SBMA

John Benson Alcanites, Planning Officer, PEZA

Published by: Semiconductor and Electronics Industries in the

Philippines (SEIPI)

Unit 902, Tower 2, RCBC Plaza Ayala Avenue cor. Gil Puyat Avenue

Makati City 1200 (632) 844-9028 to 30

On the Cover: “SEIPI goes to Tagaytay” SEIPI 110th GMM ………… 04 “All Aboard!” SEIPI’s 109th GMM ……………………… 10

12 Performance of the Philippine Electronics Industry 15 The TESDA Training Grant 16 SEIPI Travelogue

Regular Activities: NWC GMMs/Christmas Parties

21 AESSEP’s Powerhouse Year-ender December’s More Fun with ASEFEX 22 Advancing Technology while lowering down the cost 25 ASPA: Christmas in November 28 ASITEP GMM: Business Continuity and Resiliency 30 ASLM November General Membership Meeting 31 ON Semiconductor: Welcomes ASPM Members

SEIPI Sports Fellowship 32 SEIPI Golf Fellowship @ Clark 33 “Second Time Around” @ Midlands 34 SEIPI’s 6th Badminton Tournament

Other Events: 36 New SEIPI Members

38 PSECE 2013 42 SEIPI Member-Companies

Advertisements: 2 Meralco 14 Globe Business 20 PLDT Alpha 25 Schneider Electric 43 ILO Land Inc. 44 First Gen

In this issue:

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At 3:00 PM, the SEIPI GMM began with a prayer led by the SEIPI President, Ernie Santiago. Together with the SEIPI Chairman, Bing Viera, they warmly wel-comed all the members and guests, and acknowl-edged their presence despite the heavy rains brought by the typhoon and the thick fog in the city. Ernie Santiago started his report on the performance of the Philippine electronics in exports, imports and investments. The figures did not show any increase or positive growth in the last 6 to 8 months. As for the global and Philippine outlook, Bing Viera shared that the electronics market is showing continued modera-tion while the semiconductor market exhibited muted growth across SC sub-products. It is also expected that emerging economies could outpace advanced economies.

Several speakers who gave an industry update. Detlev von Ramm, General Manager of Continental Temic, shared some insights on the future develop-ments of the automotive sector, highlighted by the megatrends and outlook in the sector. Minoru Iriko, the President of Toshiba Info Equipment, discussed the new technologies on storage devices and the company’s contribution to the Philippine economy. Noel Bonoan, KPMG’s Vice Chairman on Tax, took the stage and gave a brief introduction on a study that SEIPI commissioned. The SEIPI Study is entitled “Power Rate Subsidies given by other countries in Asia” (Malaysia, Indonesia, Thailand, Vietnam, Singa-pore, China and Korea). His partner, Mike Guarin, elaborated more on the report which includes a quick overview of the electric power industry structure, cur-rent subsidies/incentives being given to players and end consumers, and its implementing rules and regu-

lations. In relation to that topic, Ernie Cabral of M-Power gave an update on the country’s power indus-try situation and outlook, including the implementation of Retail Competition and Open Access (RCOA) on 26 December 2012.

STMicroelectronics’ General Manager, Melba Cuya-hon, gave a backgrounder on the Advanced Device and Materials Testing Laboratory (ADMATEL) Pro-gram. Dr. Antonio Villaflor, Ph.D., Quality Director of STMicro and PCIEERD Governing Council Member, stated that the establishment of ADMATEL will im-prove product quality and services and enhance pro-ductivity; increase number of products, innovative technologies and S&T services; and develop capabil-ity on new and advanced techniques particularly on failure analysis and nanometrology. The closing remarks were given by PEZA Director General Lilia De Lima, the all-weather friend of the industry. She gave an update on Philippine invest-ment trends and developments, and ended with words of wisdom and encouragement, a promise of unparal-leled service and continuous support from PEZA.

The general membership meeting of the industry was held in one of the most prominent locations in Tagaytay, the Taal Vista Hotel, where everyone enjoyed the stunning view of the majestic Taal Volcano, last Thursday, 25 October 2012.

(L to R): SEIPI President Ernie Santiago and SEIPI Chairman Bing Viera

(Top L to R): Detlev von Ramm, Continental Temic and Minoru Iriko, Toshiba Info. Equipment

(Bottom L to R): Noel Bonoan and Mike Guarin, KPMG and Ernie Cabral, M-Power

“SEIPI goes to Tagaytay” SEIPI 110th GMM

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(L to R): Melba Cuyahon and Dr. Antonio Villaflor, STMicroelectronics, PEZA DG Lilia De Lima

The SEIPI Members

Subsequently, cocktails and finger foods were available at the foyer of the ballroom to put everyone’s mind and body at ease. After an hour of free-flowing drinks, snacks and good conversation, a Filipino buffet dinner followed while the Bughaw Folkloric Dance Group enter-tained the audience. Before the night ended, prizes including watches, bags, LED TV, poisenttia and milflo-res potted plants, were raffled off. Pineapples and bouquet of flowers were handed over as giveaways. Many thanks to our annual spon-sors First Gen, Globe Business, Meralco, PLDT Alpha and Linde for making this event possible.

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This GMM was a one-day affair; meeting in the morn-ing and a sunset cruise in the afternoon. The bay is a natural harbour and is well known for sailing and yachting. The sunset cruise ended with cocktails and entertainment past sundown. Held two days after PNOY’s SONA, the meeting started with a warm welcome and brief report on ‘SOSI’ - State of SEIPI and the Industry, given by

SEIPI President Ernie Santiago. DOTC Secretary Mar Roxas gave the keynote address. Secretary Roxas gladly shared important updates on the plans and pro-grams of the government, in-cluding the wider implications of its actions. He thoroughly ex-plained on how will be beneficial to the industry. A candid and dy-namic Q&A followed.

The program resumed with a short message from the venue host, Mr. Stefani Saño, Senior Deputy Admin-istrator for Business and Investments Group of SBMA. He was followed by the PEZA Director Gen-eral, Lilia De Lima. She modestly reported the invest-ment trends and some important ‘hot items’ that are coming into the country. Next came SEIPI Chairman Bing Viera who gave the global electronics and indus-try outlook. The report showed that the industry will

continue to show moderate growth for the whole year of 2012.

The next part of the program is the ‘Knowledge Sharing’ on various topics of interest, wherein all at-tending members were given time to share and present any exciting

or frustrating developments they are seeing and experiencing on the

behaviour of the market.

“All Aboard!” SEIPI 109th GMM

(L to R): Ernie Santiago, SEIPI, Bing Viera, TI/SEIPI, DG Lilia De Lima, PEZA and Stefani Saño, SBMA

Another first for SEIPI! The July GMM was held at the Subic Bay Yacht Club, an exclu-sive yacht club located inside a military base converted into a tax- and duty-free zone operated and managed by the Subic Bay Metropolitan Authority (SBMA), at Subic Bay Freeport Zone (SBFZ) last July 27.

Secretary Mar Roxas together with the SEIPI members during the Q&A portion.

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Sunil Banwari, General Manager ON Semiconductor He shared some strategic plans that need to be done which include market analysis, technology roadmaps, product development and capital in-vestments; some risks and threats that could have a major impact on the financial health and survival of a business, and some challenges on the industry.

Bong Belen, Chairman & CEO Fastech Synergy He cited the subsidiaries of “The First Asia Cor-porate Network” namely First Asia Venture Capi-tal (FAVC), AFreight Asia Pacific Ltd., Asset Growth Inc., Hermosa Ecozone Development Corp., Diwa Learning Systems Inc., Genyo, Fas-tech Synergy Ltd., First Asia Institute of Technol-ogy and Humanities (FAITH), Lima Park Hotel, Omni Aviation Corp. and Bato Balani Foundation.

Bart Santiago, Director of Engineering

Fairchild Semiconductor Fairchild reported the strategic focus of FSCP that may provide strong growth opportunities such as the adoption of new products.

Dennis Ibarra, Chairman/President and Director

Enfinity Philippines Enfinity believes that the industry should rely on free and natural resources, such as solar/photovoltaic products, which are already avail-able in the market. By 2030, the solar power gen-eration will be more than 10% of worldwide elec-tricity production, with price cost reductions and rise of 20 to 30 fold cumulative installed capacity.

Elmer Lapeña, General Manager

Excelitas Technologies Excelitas promoted their industry-academe link-age program by supporting and partnering with different institutions and schools through dona-

tions and other programs to develop their techni-cal skills.

Efren Alberto, Head of Human Resources

Moog Controls He shared some updates happening in the con-trol and instrumentation sector as well as some labor issues they are experiencing, the ‘war on talent’ such as predatory recruitment. He also mentioned the consequences of losing a talent and several risk mitigations on the part of the company and the government.

Gary Ignacio, IP and Data Center Management

Category Head, PLDT He explained the importance of outsourcing data centers and proved that PLDT is more than capa-ble, available and reliable in terms of network infrastructure, scalable IT operations and support, access to latest technology, freedom from obso-lescence and a trusted expert partner of 84 years.

Viboy Genuino, Vice President and Head

Corporate Business Group, Meralco “What does it take to run your power infrastruc-ture?” This was the question thrown to the mem-bers. He answered this by presenting their solu-tion which will allow companies to focus on their core business operations, the Meralco’s Man-aged Services (MMS). Then he described how MMS works and its service offerings. Next, he gave an update on the Retail Competition and Open Access (RCOA) by citing the back-grounder, some highlights on the DOE published circular and a customer checklist.

After the series of presentations and extended dis-cussions, it was declared a successful and well-attended GMM of SEIPI having 245 member-company representatives.

For the members who stayed a day longer in Subic, the SEIPI Sports and Recreation Committee

The SEIPI Members

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organized two (2) different tours such as the “Las Casas Filipinas De Acuzar Tour” and “Eco-Tourism Tour”. These are in line with SEIPI’s support to the Philippine tourism program “It’s more fun in the Philippines”. LAS CASAS FILIPINAS DE ACUZAR TOUR Last Saturday, all the members who joined the tour met at the lobby of Subic Bay Yacht Club. Then they rode their own vehicles, having a total of nine (9) cars in all. The group convoyed and travelled an hour going to Bagac, Bataan. As they arrived, they were welcomed and offered some invigorat-ing sago’t gulaman refreshments. After-wards, they were assembled for the guided walking tour. The Las Casas Filipinas de Acuzar (Philippine Houses of the Acuzar) is a living museum of Philippine customs and tradi-tions. It houses twenty-seven grand and meticulously decorated Filipino heritage houses of the early 18th-19th century. Each house or casa has an interesting story wanting to be told. Our tour guide gladly shared with us family secrets of Dr. Jose Rizal’s mother, Dona Teodora Alonzo. Some highlights of the tour were when she showed us the location where the Filipino version of Zorro was shot, as well as the off-limit areas of the Aliping Sagigilid (servants). They were only allowed to run at the side areas of the house to serve food and do chores. Some of the splendid and carefully restored houses are open for reservations for people to stay in, while others were turned into res-taurants where tourists/visitors can eat Fili-pino and Spanish cuisine. As soon as the tour had ended, the group went to Cafe Marivent for lunch. They tried the traditional and popoular Fil-Spanish cuisine which tasted good and had generous servings. This experience was absolutely enjoyable. It is something new to all. A must-see loca-tion, it left our minds to wonder and imagine how simple life was before. ECO-TOURISM TOUR This tour was composed of two activities such as the Pamulaklakin Trail, a mini jun-gle tour with an entertaining seminar on jun-gle survival from an elder Aeta guide, and TreeTop Adventure, a nature tripping from a breathtaking view – 100 feet above the ground – con-sisting of platforms, suspension bridges and a motor-ized canopy system.

This nature adventure was participated by the Net-Working Committees (NWCs) as part of their team-building activity.

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With the 50 NWC officers’ active participation, the NWCs hold their Planning Session & Team Building alongside SEIPI’s 109th GMM in Subic last July 27 to 28, 2012. In prepa-ration for the actual planning session, the NWCs are provided with the planning session work tem-plate that will serve as their guide in developing their respective programs and projects for SEIPI’s

fiscal year 2012-2013.

NWC PLANNING SESSION &

TEAM BUILDING @ SUBIC

The NWC officers of each respective committee were requested to align their approach with the provided SEIPI strategies or G.A.I.N.S. DAY 1: THE SEIPI STRATEGY (G.A.I.N.S) July 27 Generally, the NWCs, as part of the SEIPI Operational Management Group, under the Office of the President, should collectively work on programs that are focused and aligned with the SEIPI Strategy defined as G.A.I.N.S:

1. Global Competitiveness (Capacity Building) – to enhance the global competitiveness of the indus-try by enhancing the technical core competencies of its workforce and reducing the cost of doing busi-ness.

2. Advocacy (Public Policy Advocacy Leadership) - to advocate policy issues and concerns affecting the industry by taking an active role in public policy leadership and representing its members in various forum, dialogues and meetings with government and other concerned institutions.

3. Information (One-stop-shop for info) - to be a definitive source of industry information by providing its members and the public with relevant and up to date statistics, data, reports, studies, and other per-tinent materials.

4. Networking (Meeting of the Minds) - to encourage networking and sharing of info among members and establish linkage with other organizations in the Philippines and abroad by organizing and partici-pating in various business and industry meetings, conferences, fellowships, and events.

5. Services (Business & Consultancy Services) – to provide relevant corporate support to members services by carrying out various professional business services addressing the needs and other re-quirements of its members.

NWC PLANNING SESSION WORK TEMPLATE Following these five (5) aspects of SEIPI Strategy, the NWC Officers are requested to fill-up the work template below with specific Operational Plans and Programs per strategy. These plans and programs should be able to address each committee’s issues and concern, and as such, be able to make all NWCs a valued-added asso-ciation to SEIPI.

SEIPI STRATEGY NWC PROGRAMS & PROJECTS

PERSON -IN-

CHARGE TIMING KEY RESULT

AREA (KRA)

SUPPORT NEEDED FROM

SEIPI Global Competitiveness (Capacity Building)

Advocacy (Public policy Advocacy Leadership)

Information (One Stop Center For Info)

Networking (Meeting of the Minds)

Services (Business & Consultancy Service)