Samsung’s Philippine supplier plans Clark expansion as it looks for new clients

PHOENIX Semiconductor Philippines Corp. is commencing the second phase of its expansion in Pampanga within the year, in anticipation of more clients other than South Korea’s Samsung Electronics Co., Ltd.

In a statement issued on Thursday, the listed company said it will now proceed with the construction of the Phase 2 Expansion Project within its manufacturing center in Clark Freeport.

The project will progress in two stages. PSPC will first construct a manufacturing building with an initial production footprint of 18,000 square meters (sq.m.), a warehouse spanning 1,000 sq.m. along with an expansion power utility building.

The company expects to complete the first stage of the expansion by endAugust. Thereafter, it will start bringing in more production equipment, ancillary utilities and support facilities in anticipation of incoming production orders.

Talks between PSPC and prospective customers have moved to advanced stages, the company’s president, Byeongchun Lee, noted in the statement.

The new customers are expected to absorb the additional production capacity from the initial stage of the expansion. The facility will accommodate the semiconductor assembly and packaging contracts of PSPC major shareholder SFA Semicon Co., Ltd. of South Korea as well.

Taking on the semiconductor assembly and packaging contracts of SFA Semicon aligns with the company’s global manufacturing realignment strategy, which entails a diversification into 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,” Mr. Lee said.

The company started its commercial operations in February 2011. —