LISTED chip maker Phoenix Semiconductor Philippines Corp. (PSPC) expects production to increase by 10 percent this year as it ramps up capacity to meet an expected surge in demand for memory modules around the globe.
In a statement, the company said it expects production capacity at its existing plant in Pampanga to go up to 72 million units this year from 62 million units last year after it allocated resources for the stabilization of new machines and equipment.
On top of the existing plant, production from its new plant should increase overall output by another 40 million units once it becomes fully operational sometime this year.
“Mobile technologies across different categories have been at the core of semiconductor growth over the past few years and we don’t see this demand waning anytime soon,” said Dongjoo Kim, PSPC vice president and chief financial officer.
“Couple this with our increased focus to cater to the ever-evolving commercial and technological trends leaves me very confident in our financial performance for 2015,” he said.
“Our business has always been about enabling the success of our ultimate customers, hence additional growth now means achieving technological breadth, and this is what we intend to achieve moving forward from our IPO [initial public offering],” Kim added.
In December last year, PSPC bared plans to spend an additional $173 million for its Phase 2 expansion, apart from the $900 million it has already invested since setting foot in the country in February 2011.
The Phase 2 expansion involves the construction of a new manufacturing unit at its146,363-square meter (sq m) leased property at Clark Freeport Zone in Pampanga and the acquisition of machinery and production equipment.
The expansion will be funded by bank loans (more than 70 percent) and the P1.1-billion proceeds from its IPO last December 1.
PSPC is the local unit of South Korea’s STS Semiconductor and Telecommunication Co. Ltd. and is the sole offshore unit to be listed publicly, instead of its China unit.
PSPC officials have said the company targets a monthly revenue of $18.1 million after going public.
In the first nine months of last year, PSPC grew its net income by 61.5 percent to $13.35 million, from $8.27 million the year before, while revenues went up 10.9 percent to $171.14 million on strong demand memory modules.
Established in February 2011, PSPC mainly supplies DRAM chips to Samsung Electronics Co. Ltd. Its parent STS Semiconductor also has presence in China through Phoenix Semiconductor Telecommunication (Suzhou) Co., Ltd. (PSTS).