October 26, 2001 – Manila, Philippines – Texas Instruments (TI) Philippines has decided to put on hold its $100 million expansion project in the Philippines due to sluggish global demand and the expected negative economic effects of the September 11 terrorist attacks. Additionally, TI Philippines has cut 5% of its work force in that country.
Speaking during an event organized by the Semiconductor and Electronics Industries in the Philippines (SEIPI), an organization of more than 500 manufacturers of electronic components and products based in the Philippines, TI Philippines Managing Director Norberto Viera admitted that the project had been pushed back to 2003 or until “better business situations” arise.
The project was supposed to expand TI’s existing manufacturing plant in the Baguio City Economic Zone. Originally, the plant was expected to be completed before the end of 2001.
The project itself was aimed at increasing TI’s production of digital signal processors (DSP) and analog semiconductors. “We’ve also been trimming down our work force in the Philippines because of what’s happening now in the global semiconductor industry,” Viera said. He added the company has already put in place an early retirement program.
“So far, we’ve cut down 5% of our work force in the country. We’re still working on keeping our existing employees with us amidst the economic slump,” he said.
Previously, SEIPI Director General Ernie Santiago said the country’s electronics and semiconductor export revenues are expected to fall by 15% this year.
Despite about $576.7 million worth of investments SEIPI members infused into the industry from January to September this year, Santiago said any signs of recovery would not be felt until the middle of 2002. “It’s still uncertain, we’re basing from previous market trends,” Santiago said.