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Phoenix Semiconductor, Samsung renew supply deal

Phoenix Semiconductor Philippines Corp. said Wednesday it will produce memory products for Samsung Electronics Co. Ltd. of South Korea for another three years.

PSPC said in a disclosure to the stock exchange the three-year supply contract extension would commence on June 1, 2016.

PSPC’s  existing business transaction agreement with Samsung only provides for an extension until February 2017, but the new agreement effectively renews the contract for three more years.

It also provides for an automatic renewal for one year if no amendments are found needed by any of the parties.

“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 PSPC president Byeongchun Lee.

Lee said the renewed contract sealed once again the continued strategic partnership between Samsung, SFA Semicon Co. Ltd. and PSPC.

The common practice in the global outsourced semiconductor assembly and test industry is a purchase-order-based contract.

“A long-term based contract for a semiconductor company is something unique to PSPC among OSAT industry players in the world,” Lee said.

Samsung under the agreement 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.

PSPC recently took delivery of production equipment from Samsung and ramped up the production capacity in line with the technology shift in memory products.

PSPC exported $2.53 billion worth of of memory products in 2015. 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.

“The renewal of our agreement with Samsung is a testament to the outstanding semiconductor manufacturing competency of PSPC,” Lee said.

He said the company remained cautiously optimistic that a turn-around in the global semiconductor industry would commence in the second semester of the year.

Topics: Phoenix Semiconductor Philippines Corp. , Samsung Electronics Co. Ltd. of South Korea
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