Phoenix Semiconductor to proceed with Pampanga facility expansion

MANILA, Philippines – Korean-owned semiconductor company Phoenix Semiconductor Philippines Corporation (PSPC) said on Thursday, January 12, it will proceed with the expansion of its manufacturing center in Clark Freeport, Pampanga, as it expects the global semiconductor industry to continue on its recovery path in 2017.

PSPC said in a disclosure to the Philippine Stock Exchange that it will construct a manufacturing building with an initial production footprint of 18,000 square meters (sqms), a new 1,000-sqm warehouse, and an expansion power utility building within its 15-hectare facility.

The new facilities will mainly cater to the company’s new clients, other than its major customer, South Korean electronics giant Samsung.

“The commencement of the Phase 2 project is a clear testament of the commitment of PSPC and its major shareholder, SFA Semicon Company Limited of Korea, to continue with its investments and to expand its presence in the Philippines,” PSPC president Byeongchun Lee said in a statement.

He added that PSPC is now in advanced stages of talks with new customers that will take up production capacity of the initial phase of its expansion project. (READ: SEC approves Phoenix Semiconductor’s P2.65-B IPO)

Realignment strategy

Lee also said the new facility will house production capacity for SFA Semicon’s semiconductor assembly and packaging contracts. This is in line with its global manufacturing realignment strategy, which will lead to PSPC diversifying to mobile semiconductor products.

“PSPC is foreseen to be a manufacturing hub of the SFA group in Asia providing state-of-the-art semiconductor assembly services to Samsung and other electronics companies around the world,” Lee said.

While the building’s architectural and engineering plans and the signing of the main construction contract are being finalized, PSPC said project mobilization and civil and foundation works have been started.

The Phase 2 expansion project is scheduled for completion this August, after which ramping up of production equipment, ancillary utilities, and support facilities is expected to be started immediately in anticipation of incoming production orders.

Financing for the construction of the initial building of the expansion project will be sourced from the company’s initial public offering in December 2014 and from retained earnings from past years of operations.

The expansion project was originally scheduled for implementation in 2016, but it was delayed due to the slowdown in the global semiconductor industry. – Rappler.com