The Philippine government is close to finalizing a power subsidy package for Samsung Electro-Mechanics Philippines Corp. (SEMPHIL), paving the way for the company’s planned $1-billion expansion in Laguna province.
Philippine Economic Zone Authority (PEZA) director-general Tereso Panga said the formula and mechanism for the subsidy have been settled, with rates acceptable to both the government and the South Korean electronics giant.
“We’re set to endorse this to the Fiscal Incentives Review Board [FIRB] within the week,” he said, adding that the proposal would then be forwarded to Malacañang for presidential approval.
Once cleared, PEZA will sign the registration agreement with SEMPHIL, which is targeting to break ground on the expansion by January 2026.
Panga said the arrangement has been rationalized to keep the government’s fiscal exposure low.
The expansion is part of the Luzon Economic Corridor, a strategic initiative linking Subic Bay, Clark, Manila and Batangas to spur high-value manufacturing and trade.
Under the CREATE MORE law, the project qualifies for a tailored incentive package, with processing fast-tracked as a priority investment.
Operating in Calamba since 1997, SEMPHIL manufactures multi-layer ceramic capacitors, inductors, tantalum capacitors and chip resistors for global markets. The company employs nearly 7,000 workers, a number expected to rise significantly once the expansion is completed.
The project is expected to boost the country’s electronics manufacturing capacity and reinforce the Philippines’ position as a competitive site for advanced components production in the region.
