Here's proof that Philippines' electronics market may be heading for a rebound

Export values plunged to $1.5b.

According to DBS, after languishing for seven months, the US semiconductor book-to-bill ratio broke above parity in the first two months of this year. 

Clearly, this is an encouraging sign and points to a turnaround in the electronics demand. Electronics export values have plummeted from a peak of USD 3.5bn in September 2010 to a recent low of USD 1.5bn in January.

Over this time period, electronics exports as a percentage of total outbound shipments fell from 65% to 37%. Export values were sustained by diversification into nonelectronics manufactures.

Here's more from DBS:

Going forward, exports are likely to get a boost from better electronics numbers. However, it is difficult to say that a full-fledged electronics recovery is underway. Notably, a similar trend had also emerged in early 2012 before bookings tapered off sharply in July.

Moreover, the bookings value for January and February are still quite low when compared over the past 2-3 years. Better traction in the global economic recovery will be needed for this improvement to be sustained.

For the longer term, there could also be structural challenges in the sector as the Philippines electronics industry has not benefitted from the increase in smartphone demand.