AYALA-LED listed chip producer Integrated Micro-Electronics, Inc. (IMI) said the tariffs imposed by US President Donald J. Trump have “no effect” on the company.
“It has no effect. Our customers pay the tariff… At the end of the day, this is all about us just keeping our heads down, focusing on what’s important,” IMI Chief Executive Officer Louis Sylvester Hughes said during the Money Talks with Cathy Yang program on One News on Thursday.
“That’s executing with sourcing and supply chain, getting things done within our four walls on the factory floor, and shipping on time with the highest degree of quality. If we continue to do that, we will win,” he added.
Mr. Hughes said it has been “business as usual” for IMI amid global trade uncertainty.
“For the Philippines, it’s really good news because other countries in Southeast Asia saw much higher tariffs. So, if anything, this has been a good thing for IMI over the last few weeks,” he said.
On Wednesday, Mr. Trump said he would temporarily pause the higher tariffs imposed on dozens of countries for 90 days.
However, the White House said a 10% blanket duty on almost all US imports would remain in effect.
Mr. Trump also said the tariff on Chinese imports would be increased to 125% from the previous 104%.
Prior to the temporary relief, the US imposed an 18% reciprocal tariff on Philippine goods, among the lowest in Southeast Asia. Other Southeast Asian countries faced higher tariffs, such as Cambodia (49%), Vietnam (46%), and Myanmar (44%).
Mr. Hughes said IMI has seen more companies diversifying their operations outside of China amid trade tensions.
“More of the transformation is moving out of China to places like Southeast Asia and Mexico… This has been really beneficial for us because we do have a footprint that allows us to help customers deliver goods into the US, either duty-free through the US-Mexico-Canada Agreement in Mexico, or at a very low duty compared to others out of the Philippines,” he said.
Meanwhile, Mr. Hughes said the Philippines remains competitive in terms of manufacturing compared to other countries, due to an English-speaking population and low labor costs.
“The Philippines offers us and our customers an incredible advantage when it comes to executing and building complex, high-mix electronics products,” he said.
For 2024, IMI reduced its attributable net loss by 53% to $49.79 million, driven by restructuring initiatives. Revenue declined by 17.2% to $1.1 billion, as its wholly owned subsidiaries continued to be affected by “prolonged recovery challenges in the automotive and industrial markets.”
IMI shares increased by 6.47% or 11 centavos to P1.81 per share on Thursday. — Revin Mikhael D. Ochave
