Phoenix Semiconductor Philippines Corp. (PSPC) has received P401.16 million from state-owned Clark Development Corporation (CDC), representing receivables from the mandated electric power discount incentive.
“The P401.16 million specifically refers to reimbursement by the Clark Development Corporation of the power discounts for electric power utilized and fully paid by PSPC since the commencement of operations in 2010.
“PSPC had requested payment of receivables in line with E.O 856 and its lease agreement signed with the CDC in March 2010,” Phoenix Semiconductor told the Philippine Stock Exchange.
The P401.16 million was the first tranche of reimbursement received by the company from the government.
The balance of the total collectibles due to PSPC for advanced full payment of the power charges since the start of its commercial operations in 2011 until December 2015 amounts to P739.18million.
The incentive on power discounts under Presidential Executive Order No. 856 is in line with the Industry Competitiveness Fund (ICF) established under the May 2009 E.O. 796.
The 2009 executive order was issued to support power-intensive industries that placed substantial investment in the Philippines to attract more foreign direct investment into the country.
“The collection will have no significant impact on PSPC’s income statement, but will increase the company’s cash and cash equivalents in its balance sheet from $34.70 million as of end of 2015 to about $43.33 million. The P401.16 million had previously been booked as receivables in its balance sheet,” Phoenix Semiconductor noted.
“The payment of the power subsidy is a testament to the Philippine government’s commitment to support industries that contribute to the Philippine economy,” PSPC President Byeongchun Lee said.
“We are hopeful that the National Government will likewise settle the balance of the power subsidy reimbursement under the Industry Competitiveness Fund in the near future,” he noted.
The company aims to proceeds with the construction of its planned Phase 2 manufacturing facility with a production footprint of 38,000 square meters.
The new facility is about 40 percent larger than the current Phase 1 plant that is dedicated exclusively to customer Samsung Electronics of Korea. The capital expenditure program for Phase 2 is around $172million.
PSPC is one of the largest manufacturers and exporters of semiconductor products in the Philippines.
It shipped 814.44 million semiconductor memory units to exclusive customer Samsung Electronics worth $2.53 billion in 2015, compared with $ 2.92 billion in 2014.
The company recorded gross revenues of $208.86 million from product sales and net income after tax of $13.46 million last year.
PSPC experienced a downturn in production volumes in the second half of 2015 due to weak demand for PCs, laptops, and other computing devices on account of the slowdown in China’s economy and other developed countries. – See more at: http://www.gmanetwork.com/news/story/564057/money/companies/phoenix-semiconductor-gets-p401-m-power-subsidy-from-phl#sthash.FpXDoZTB.dpuf