Filipino semiconductor firm bags $1.6bn investments

With three upcoming new investments valued at $1.6 billion that would employ 9,000 Filipinos, homegrown EMS Group stands to put the Philippines anew on the map of the global semiconductor industry.

With annual revenues of P5 billion, EMC Group expects $800 million investments from two companies — one American the other Japanese -which have transferred their high-value semiconductor manufacturing from China.

Perry Ferrer, EMS president, told reporters another $800 million investment will fully materialize in the second half of the year for the production of a consumer electronic product from Europe.

Both investments will be located in an economic zone in Batangas.

Ferrer said the output will all be finished products and thus will be for direct export to the US and Europe.

The European company will integrate all of the components being made in the country for the initial product it will manufacture, a high-end hair care electronics product.

Ferrer said the company plans to bring in more of its lineup in the future.

“Bringing that company to the Philippines will open up opportunities that can be done here.

Because of the technology it will bring, we can tap other customers,” Ferrer said.

This project will create 5,000 to 6,000 workers.

The Japanese and American companies which are relocating their production to the Philippines meanwhile, will create 2,500 to 3,000 jobs.

Ferrer said the two have cited the US-China conflict geopolitical issues for the pullout and adopted this strategy to protect their markets.

Higher tariffs slapped on China-made exports to the US have made their products more expensive.

According to Ferrer, the proof of concept is ongoing to “prove how good the Filipinos are in terms of craftsmanship.”

He said EMS will be the first company in the Philippines to employ the process used in the production of power integrated circuits for automative electronics, a higher value process before assembly, test and packaging.

Ferrer noted the importance of the free trade agreement with US and the European Union so that “our customers can enjoy the duty exemptions and make the Philippines attractive.” Malaya