The Philippine Economic Zone Authority is set to endorse a power subsidy package for Samsung Electro-Mechanics Philippines (SEMPHIL) to the Fiscal Incentives Review Board within the week.
According to PEZA Director General Tereso Panga, the subsidy approval will pave the way for SEMPHIL’s $1-billion expansion plan in Calamba, Laguna.
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 FIRB within the week,” he said, adding that the proposal will 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 next year.
The arrangement has been rationalized to keep the government’s fiscal exposure low, Panga pointed out.
The expansion aligns with 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, which grants perks to megabuck investors, the project qualifies for a tailored incentive package, with processing fast-tracked as a priority investment.
Operating in Calamba since 1997, SEMPHIL produces multi-layer ceramic capacitors, inductors, tantalum capacitors, and chip resistors for global markets. The company currently 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, according to Panga.
