South Korean semiconductor firm SFA Semicon Philippines Corp. (SSP) said its income last year more than doubled to $12.8 million (about P668 million) from the previous year’s $5.5 million (P287.1 million) on higher sales.
Gross revenues of the company that has a facility in Clark Freeport Zone in Pampanga rose 8 percent to $347.02 million from the previous $322.66 million, mainly as a result of the double-digit rise in over-all production output and orders and the increased volume contribution of non-Samsung end-customers to total revenues.
“SSP staged a breakthrough recovery in financial and operating results which validates its SFA group based marketing strategy and takes advantage of its superior manufacturing efficiencies,” company chairman and CEO Joon Sang Kang said.
He said the company’s total production output breached the 1 billion-unit mark on the back of incremental volume contribution from new customers. Total production increased 9 percent to 1.08 billion units from 994 million units last year.
Kang said the steady growth in the revenue contribution of new end-customers drove the positive performance of the company.
Under contract with its parent company SFA Semicon Co. Ltd of Korea (SSK), which was previously a unit of technology giant Samsung, the Philippine unit expanded its production contract with Wireless Power Amplifiers Corp. for the assembly of non-memory power amplifier modules in land grid array packages. Total production amounted to nearly 90 million modules which accounted for a share of 8 percent of the company’s total output.
The company also produced 22 million multi-media flash cards, 38 percent higher from the 16 million units posted the previous year. Production orders from new customer Ramos Technology of Korea totaled nearly 6 million units which provided the incremental volume contribution.
Its output of DRAM memory modules in various formats reached 884 million, accounting for 82 of the overall output for the year, and an increase of 2 percent from the previous year’s 863 million memory modules. Total module output was shipped through its parent company to its principal end-customer which has been a partner customer since 2011.
Orders of component chips totaled 86 million units, 22 percent lower than the 110 million chips assembled and tested in 2020. It accounted for 8 percent of the 1.08 billion units produced during the year.
The global semiconductor industry is expected to continue its growth trajectory at a moderate pace of about 8 percent in 2022 in line with the growing memory requirements of data centers and the sustained demand for computing and automotive electronics, it said.
The company said it remains optimistic that its financial and operating performance will continue in line with its integrated global marketing strategy under parent corporation, SSK.