Samsung to continue outsourcing deal with Phoenix Semiconductor PHL

Samsung Electronics Co. Ltd. will continue sourcing its memory cards and chips from Phoenix Semiconductor Philippines Corp. (PSPC) despite an insolvency process involving PSPC's parent firm in South Korea.

 

In a June 19 letter, Samsung assured STS Semiconductor and Communications Co. Ltd. of "our commitment to continue business transactions with your Philippine subsidiary," PSPC noted in a disclosure to the Philippine Stock Exchange on Wednesday. 

 

PSPC as Samsung's preferred outsourced semiconductor assembly and test provider for memory cards, chips and modules has been in place since July 14, 2010.

 

On June 25, STS commenced joint administration proceedings with creditor banks on the heels of a rehabilitation plan for affiliate BKE&T Co. Ltd. whose loans were guaranteed STS.

 

Under the proceedings, a debt restructuring program will be crafted to ensure that STS can continue operating as a semiconductor assembly and test company while its financial structure undergoes improvements, PSPC said.

 

The proceedings have no significant impact on the operations and financial condition of PSPC, the company said. – Keith Richard Mariano/VS, GMA News