Phoenix Semiconductor Philippines Corp. (PSPC), the local semiconductor arm of South Korean firm Semiconductor and Telecommunications Co. Ltd. (STS), achieved a $10.15 million net income in the first six months of the year, 11 percent higher than the $9.17 million a year ago.
Gross revenues likewise rose by 8 percent to $118.25 million from $109.85 million due to the 7 percent growth in sales of dynamic random access memory (DRAM) modules for servers and personal computers (PC), as well as the 13 percent increase in sales of memory chips used in smart phones, tablets, laptops and other same devices.
“As a preferred outsourced semiconductor assembly and test provider of memory chips and modules for Samsung, PSPC continued to serve a significant proportion of Samsung’s requirements for DRAM modules,” said Dongjoo Kim, PSPC Vice president and chief finance officer.
Kim noted that half of the production of PSPC’s Clark Freeport facility are for higher-valued DRAM modules for servers, while the 48 percent balance are for memory chips for PCs, laptops and mobile devices and another 2 percent for flash memory cards.
The company said it is riding on the steady growth of the server applications market rather than the fluctuating mobile phone and PC-laptops market, which is experiencing flat growth at present due to the slowdown in Chinese and European markets.
“As a component of Samsung’s back-end supply chain, we are committed to supporting its product mix strategies with production capacity to meet the changing needs of the end-user market,” Kim said.
Costs were stable during the six-month period as cost of goods sold went up to $103.33 million from $95.87 million, while financing costs were reduced by 23 percent to $2.08 million from $2.72 million a year ago.
Mr. Kim predicted that the end-user electronics market would rebound in the fourth quarter this year, driven by the recovery and increased consumer spending of developed countries during the December peak months. In view of this, the PSPC president said the company is ready to ramp up production and take advantage of the anticipated recovery and growth of the global technology market in the second half of the year.
PSPC supplies part of the memory device requirements of HP, Dell, Lenovo, Toshiba, among other consumer electronic brands being served by Samsung South Korea.
Going public the Philippine market last December 1, 2014, PSPC is STS’s sole offshore unit listed publicly. The company is targeting monthly revenue of $18.1 million after going public.
Established in February 2011, PSPC mainly supplies memory chips — mostly DRAM chips — for Samsung. The parent firm STS also has presence in China through PSTS. Kristyn Nika M. Lazo