LISTED semiconductor manufacturer Phoenix Semiconductor Philippines Corp. (PSPC) said on Friday it has received payment of a power subsidy refund amounting to P668.60 million, which will be reinvested for its Phase II expansion project in Clark Freeport.
The amount represents payment “for arrears from the electric power discounts granted under Presidential Executive Order No. 856 that seeks to promote greater foreign investments in semiconductor and other power-intensive industries,” the company said in a disclosure to the Philippine Stock Exchange (PSE).
“Said amount covers the remaining part of the advanced payments made by PSPC for the generation and transmission cost of its electric consumptions during the 2011-2015 operations,” it added.
An initial payment of more than P401 million was made on April 2016, representing the portion initially reimbursed by the national government.
“The power subsidy incentive under EO 856 is in line with the Industry Competitiveness Fund (ICF) established through EO 796 in support of power-intensive industries that pour in substantial investments in the country,” PSPC said.
PSPC aims to reinvest the amount in its Phase 2 expansion project which is underway, to multiply its semiconductor assembly production capacity to serve non-Samsung customers starting in the last quarter of 2017.
The payment was made through Clark Development Corporation, which administers the Clark Freeport Zone where PSPC’s manufacturing center is located.
“We are committed in contributing to the vision of the Philippine government to make the country a leader in the semiconductor industry,” PSPC President Byeongchun Lee said.
PSPC is being positioned by its parent company, SFA Semicon Co. Ltd. (SSK), to become the outsourced semiconductor assembly and test (OSAT) production hub of SFA Group in Asia.
“This is in line with the proven outstanding manufacturing capability of the Company to serve the exacting standards of global leader Samsung which it plans to leverage to serve other international electronics companies in the near future,” it said.
The company’s phase 2 expansion is expected to be completed by September this year, generating about 1,000 engineering and construction jobs.
“Once fully operational, PSPC will employ another 1,500 production floor employees and support staff for its Phase 2 semiconductor assembly, packaging and testing facility,” the company said.
The 18,000-square-meter Phase 2 production facility will start ramp-up of equipment by September for target trial production runs before the end of 2017.
The company currently produces memory devices and chips that are used in PCs, servers, laptops, smart phones and other mobile products.