Name change approved by stockholders
LISTED semiconductor manufacturer Phoenix Semiconductor Philippines Corp. (PSPC) announced that its stockholders have approved its corporate name change to SFA Semicon Philippines and that it is targeting the completion of its phase two expansion project by the end of 2017.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, the company said the phase 2 expansion project in Clark Freeport, Pampanga, which costs $75 million, will be serving more clients other than its exclusive phase one facility client Samsung Electronics.
The company expects to finish the first stage of the expansion by end-August. PSPC said it will start bringing in more production equipment, ancillary utilities and support facilities in anticipation of incoming production orders.
Target trial production runs for customers are expected before the end of 2017.
“Under its new strategic positioning, the company shall be the Asian manufacturing hub to push the drive of the Group to offer OSAT services to the semiconductor and electronics companies around the world,” PSPC President Byeongchun Lee said, referring to outsourced semiconductor assembly and test.
In June last year, PSPC signed an agreement with Samsung and SFA Semicon Co. Ltd. of Korea (SSK) renewing the existing partnership with Samsung for the production of memory modules and cards in its exclusive phase one facility for three years, with automatic renewal for one year.
Lee said PSPC “is optimistic that it shall exceed 2016 revenue and earnings performance in 2017.”
In 2016, PSPC posted net income after tax of $6.42 million, nearly 53 percent lower than the $13.6 million recorded in 2015.
The company said the corporate name change was approved during the annual stockholders’ meeting held on April 21, signifying the launch of the global strategy of its parent company SSK, formerly STS Semiconductor
Telecommunications Co. Ltd. (STS).
“The new PSPC shall leverage the global network and research and development strengths of the SFA Group to create synergies and bolsters its foothold in the semiconductor industry,” Lee said.
“Upon proper filing of the amendment of its Articles and By-Laws with the Securities and Exchange Commission, the Company shall apply with the Philippine Stock Exchange the change in its ticker symbol from PSPC to SSP, the company said.
The SFA Engineering Group gained entry into PSPC when it acquired a controlling interest in the company’s parent firm, SSK in 2015.