Phoenix Semiconductor starts Clark factory expansion

Phoenix Semiconductor Philippines Corp. (PSPC) has broken ground for the second phase of expansion at its manufacturing center in Clark Freeport, Pampanga.

In a disclosure to the Philippine Stock Exchange, the company said the aim this year is to expand manufacturing capacity for clients other than Samsung South Korea.

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

The expansion plan covers the construction of a manufacturing building with an initial production footprint of 18,000 square meters, a new 1,000 sqm warehouse and the power utility building.

PSPC is in the advanced stages of negotiations with new customers that will take up production capacity from the initial phase of the expansion.

The new facility will also cover the production capacity of SFA Semicon’s assembly and packaging contracts in line with the global manufacturing realignment strategy as PSPC diversifies into mobile semiconductor products.

At the same time PSPC is preserving its relationship with global leader Samsung Electronics.
The construction works are slated to be completed by last August this year.

The proceeds from the company's initial public offering in December 2014 and retained earnings from past years will cover the cost of construction, PSPC said. — Ted Cordero/VS, GMA News