Phoenix Semiconductor Philippines Corp. (PSPC) has signed $19 million (P954.37 million) worth of contracts to execute the Phase 2 expansion of its Clark facility as part of its strategy to boost its production capacity.
In a disclosure to the Philippine Stock Exchange, PSPC said it signed on Tuesday two contracts with Welcron Hantec Philippines Corp. to construct the Phase 2 expansion of its manufacturing plant at the Clark Freeport Zone (CFZ) in Pampanga.
The first contract, worth $1.67 million, covers structural and electromechanical construction works for the main process building, power utility building, and the overbridge structure.
The other contract, worth $17.56 million, is for the supply of construction equipment and materials. The equipment and materials are to be shipped from South Korea or other countries on a free on board (FOB) arrangement.
The company will add 18,000 square meters (sqm) of floor area to its main process building, a new 1,000-sqm warehouse, and expand an existing power utility building under the Phase 2 development. Construction for Phase 2 development started last January and is set for completion in August.
Welcron Hantec Philippines is the local subsidiary of Welcron Hantec Co. Ltd. of South Korea.
In addition, PSPC also signed a purchase agreement with its South Korean parent for the supply of water demineralization and wastewater treatment systems for the Phase 2 production facility.
Welcron is expected to shell out $3.05 million for the wastewater treatment contract. It will procure the equipment from Mirae Eng Co. Ltd.
Funding for the Phase 2 project will come from the proceeds of PSPC’s IPO in December 2014 and from retained earnings.
Established in February 2011, PSPC is a local subsidiary of South Korean semiconductor giant STS Semiconductor, which supplies memory chips for Samsung. STS also has a presence in China through unit PSTS.
PSPC’s products are used in memory chips and devices for computers, laptops and servers, and micro SD cards for mobile phones.