Korean semiconductor giant gears up for expansion

MANILA, Philippines — For every smart gadget, computer, flat-screen monitor, and television set, there’s a semiconductor that is essential to run these sophisticated electronic devices.

Because semiconductors are found inside the body of today’s most advanced devices (read: not visible), it’s easy to forget how essential they are to their performance. Unbeknownst to many, semiconductors serve as a conduit at its most basic form, a very small switchboard that allows the flow of electricity.

Such highly sophisticated and specialized production of these chips requires expertise that is hard to come by. This is where Phoenix Semiconductor Philippines Corp. (PSPC) comes in. The South Korean semiconductor giant has been at the forefront of semiconductor production, assembly and test (OSAT) since it began operations back in 2011.

With a manufacturing plant in Clark, Freeport Zone in Pampanga, PSPC has been producing memory semiconductor chips that have made their way into consumer goods such as laptops, and storage devices.

Phoenix Semiconductor Philippines Corp. Chief Finance Officer Dongjoo Kim

“Memory chips are quite stable and do not undergo constant change. They have a generally longer life cycle compared to non-memory chips,” said DJ Kim, the company’s chief finance officer.

PSPC is on the verge of going public soon. Plans of expansions are slated to commence on the second half of 2015.

While the existing plant in Clark manufactures memory semiconductors, the new section of the expansion will focus more memory chips found on high-end mobile devices. This move should open a whole new segment of clients for the company.

“It is our hope that given the optimistic demand for electronics, we can begin to reach out to more and more clients. We welcome the opportunity to grow in this (high-end mobile device) segment as it would make us a competitive player in the market,” Kim said.

Expansion to other segments should help the company sustain its impressive growth over the last year.

The company’s revenue was up 14 percent to $109.85 million as of June 30, 2014 due to increase in production and sale of higher density products.

Net income for the first six months of the year increased 116 percent as compared to the same period a year ago due to higher sales and decrease in other non-operating expenses.

As of June 30, 2014, the company had total assets of $187.90 million. Of the total assets, $70.96 million are current assets that include cash and cash equivalents, trade, and other receivables. The company’s property, plant and equipment as of June 30, 2014 amounted to $107.75 million. advt