Samsung Moves to Build Chip Plant in Philippines

Here’s the news by Kim Yoo Chool, published today in THE KOREA TIMES (In light of tragic bad press for the Philippines, a bit of good new may lighten up some mood J ):

Samsung Electronics plans to build a chip manufacturing plant in the Philippines.

``As far as I know, Samsung Electronics and the Philippine government are talking about the plan. However, some technical issues still remain before a final decision,’’ a high-ranking Samsung insider told The Korea Times.

``We will announce via a regulatory filing if any concrete decision comes out,’’ the source said.

According to a report by the Manila Bulletin, ranking officials from the Philippine government said that talks are underway with Samsung to build a factory producing integrated circuitry for chips _ with an investment of $1 billion ― on a reserved 30-hectare site in the Clark Special Economic Zone ― a former U.S. air force base north of Manila.

The newspaper, quoting unnamed sources, said that Samsung will start construction this year.

``Like we said earlier, we have strong interest in a possible manufacturing plant in a Southeast Asian nation. However, the report is a bit exaggerated,’’ the source said.

Samsung has been conducting extensive research in the region for the site of an electronics plant.

The company currently operates an optical disk drive manufacturing facility south of Manila. It also runs Samsung Electro-Mechanics Philippines Corp., which produces multi-layer capacitor thick film chip resistors.

``We must lower costs further to boost price competitiveness,’’ the source said.

Electronics accounts for some 50 percent of export revenues in the Philippines, which wants to expand its role as a key spot for electronics firms seeking low-cost manufacturing bases, according to industry experts.

Texas Instruments of the United States, the world’s No. 1 mobile phone chip maker, has already started building a $1 billion chip plant in the Clark Special Industrial Zone.

Samsung is busy bolstering its presence in the Southeast Asian region. On Thursday, Siltronic Samsung Wafer Pte ― Samsung’s first wafer production site outside South Korea ― began producing 12-inch or 300 millimeter wafers at a plant in Singapore.

yckim@koreatimes.co.kr