MANILA, Philippines – Phoenix Semiconductor Philippines Corp. (PSPC) signed yesterday an agreement with Samsung Electronics Co. Ltd. and SFA Semicon Co. Ltd. for the production of memory products for Samsung of South Korea.
This new deal renews an existing agreement for three more years effective June 1, 2016. It also provides for an automatic renewal for one year.
“We are pleased that our partnership with global leader Samsung Electronics has been renewed and we thank them for their continued trust and confidence in the outstanding manufacturing efficiencies and quality of PSPC,” said Byeongchun Lee, president of PSPC.
The renewed contract seals the continued strategic partnership between Samsung, SFA (STS) and PSPC, Lee said.
The common practice in the global outsourced semiconductor assembly and test (OSAT) industry is a purchase-order-based contract.
However, Lee said a long term based contract for a semiconductor company is something unique to PSPC among OSAT industry players in the world.
Under the arrangement, Samsung shall continue to supply important critical production materials and state-of-the-art semiconductor manufacturing and testing equipment over the contract period to ensure that PSPC conforms to the former’s highest standards of product quality and manufacturing efficiencies.
Last year, PSPC shipped $2.53 billion export value of memory products. Its major product lines are Dynamic Random Access Memory and memory chips for desktop computer work stations and servers, PCs, laptops and ultrabooks, as well as Samsung branded memory secured digital cards.
In December 2014, PSPC raised P468 million from the primary portion of its initial public offering, the proceeds of which were used primarily for the expansion of the existing phase 1 production plant, mainly for the installation of the memory card packaging production line.
“The renewal of our agreement with Samsung is a testament to the outstanding semiconductor manufacturing competency of PSPC.” Lee said.
He added that the company remains cautiously optimistic about a turnaround in the global semiconductor industry in the second half.