Samsung Electro Mechanics Philippines Corp. (SEMPHIL), a unit of Korea’s largest conglomerate, is looking to invest over $1 billion in the Luzon Economic Corridor (LEC), a major infrastructure and trade initiative aimed at boosting economic growth in the region.
LEC is an infrastructure initiative connecting Subic Bay, Clark, Manila and Batangas. The United States, Japan and the Philippines vowed during the April 2024 Trilateral Leaders’ Summit to support the infrastructure project.
Foreign investors led by GIP and KKR and the Indo-Pacific Partnership for Prosperity signed a memorandum of understanding to collaborate on catalyzing infrastructure investment.
SEMPHIL’s planned investment is under government review for specific incentives, according to Secretary Frederick Go, the Special Assistant to the President for Investment and Economic Affairs.
“They are asking for specified perks,” Go said, adding that discussions are being expedited.
“I believe they’re rushing the interagency discussions, and I hope we see movement within the first half of the year,” he said.
SEMPHIL, established in July 1997, has a facility in Calamba City, Laguna that manufactures multi-layer ceramic capacitor (MLCC), tantalum capacitor, inductor and chip resistor which are commonly used in electronic gadgets.
SEMPHIL had a workforce of nearly 7,000 as of January 2023, according to the Department of Trade and Industry.
SEMPHIL is considered by the Philippine Economic Zone Authority as one of the best employers in the Philippines.
Its planned investment falls under the CREATE MORE Act, which provides defined tax incentives for projects under P50 billion. For larger investments, incentives can be customized.
“It’s not an exact definition of incentives—they can tailor-fit them,” Go said.
The proposed investment is expected to support high-tech manufacturing in the country.
Go also reported increased interest in the Luzon Economic Corridor (LEC) from investors in the US, Japan, the UK, South Korea, Australia, Sweden and Canada.
The LEC aims to develop strategic infrastructure including ports and railways to enhance trade and logistics in Luzon.