Listed Phoenix Semiconductor Philippines Corp. said it has received the subsidy from the electric power discounts offered by the government.
In a disclosure to the Philippine Stock Exchange, the semiconductor firm said it received a reimbursement amounting to P401.16 million, representing receivables from the electric power discount incentives from the Clark Development Corp. (CDC), granted under Presidential Executive Order 856.
Specifically, the P401.16 million was a reimbursement by the CDC for electric power utilized and fully paid by PSPC since it started its operations in 2010.
PSPC had requested payment of receivables in line with EO 856 and its lease agreement signed with the CDC in March 2010.
The reimbursement was the first tranche of the P739.18 million total receivables of the company under EO 856 and the contractual agreement with the CDC.
“The payment of the power subsidy is a testament to the Philippine government’s commitment to support industries that contribute to the Philippine economy,” PSPC President Byeongchun Lee said.
The grant of subsidized power rates to semiconductor companies under E.O. 856 is in line with the Industry Competitiveness Fund (ICF) established through E.O. 796 on May 21, 2009.
That law aims to support power-intensive industries that bring substantial investments to the country in order to make the Philippines more attractive to foreign direct investments.
“The collection will have no significant impact on PSPC’s income statement, but will increase the company’s cash and cash equivalents in its balance sheet from $34.70 million as of end of 2015 to about $43.33million,” the company said, since the P401.16 million had previously been booked as receivables in its balance sheet.
Lee also said PSPC would proceed with the planned construction of its Phase 2 manufacturing facility, which has a production footprint of 38,000 square meters.
The new facility will be about 40 percent larger than the company’s current Phase 1 plant that is dedicated exclusively to its customer Samsung Electronics of Korea.
The capital expenditure program for this Phase 2 facility will cost around $172million, the semiconductor firm told the PSE.
“We are hopeful that the National Government will likewise settle the balance of the power subsidy reimbursement under the Industry Competitiveness Fund in the near future,” Lee added.