MANILA, Philippines – Phoenix Semiconductor Philippines Corp. (PSE:PSPC) receives the third portion of its receivables from discounted electricity granted under Clark Development Corporation (CDC) Lease Agreement and Presidential Executive Order No. 856.
The recent reimbursement worth nearly P46 million is the third partial payment of the government through CDC. The electricity discounts are accounted for the power used and fully compensated by PSPC. The payment encompasses the firm’s commercial operations since 2011.
The discounted power rate program of the government bears on the industries requiring extensive electricity supply, which support the country’s expenditures significantly. Through increased investments in the Philippines, foreign direct investments could increase in the long run.
The proceeds of the settlement will perk up the cash and cash equivalents of the company by $0.92 million to $35.98 million as of September 30, 2016.
Recently, PSPC ‘s parent firm in Korea, SFA Semicon Co. Ltd., is anticipated to allocate at least $100 million for expansion of capacity in local operations.
Ramon M. Lopez, Department of Trade and Industry (DTI) Chief, revealed to reporters that though there is no investment amount disclosure, the project will likely provide over thousand jobs towards 2018. According to his text message to journalists, his estimation is an allocation of $100 million.
PSPC is found in Clark, Pampanga’s Clark Export Processing Zone. It is the deliverer of electronic products to SFA. Apart from PSPC, Lopez also met with Hyundai, Kepco, and Samsung.
In the third quarter, the electronic company reported a jump in exports to Samsung Electronics of South Korea by 62 percent in the third quarter of 2016.
In a disclosure to the Philippine Stock Exchange (PSE), PSPC claimed that it has shipped memory chips worth $452 million to its exclusive customer. This is a big increase from $279 million in the second quarter of the same year.
In the fourth quarter, the firm is anticipated to generate 210 million memory devices, which is a climb by 31 percent from third quarter’s booking of 160 million.
Byeongchun Lee, PSPC President, claimed that DDR4 chips generation will increase from third quarter’s 57 million units to 78 million units, an increase of 62 percent.
Phoenix Semiconductor Philippines Corp. was registered with the Securities and Exchange Commission (SEC) and incorporated on January 27, 2010. In February 2011, the company commenced its commercial run. Primarily, it is committed to construction, management, and operation of plants used for manufacturing, assembling, testing, and storing semiconductor and memory devices.
The electronics company supplies to Samsung Electronics Co., Ltd., particularly modules, memory components, and cards.
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