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SFA Semicon Philippines Corp. (SSP) has extended its contract with its South Korea-based parent company to allow it to continue operating its manufacturing plant in Pampanga.
In a disclosure to the stock exchange Tuesday, SSP said its board of directors had approved the renewal of its business transaction agreement with SFA Semicon Co., Ltd. (SSK). The contract allows SSP to continue the assembly and test of semiconductor memory products in its manufacturing plant in Clark Freeport Zone, it said.
The renewed agreement will take effect on July 1 and will expire on June 30, 2021. SSP’s board of directors approved an agreement that may be automatically renewed for a year under the same terms and conditions, unless either of the parties terminates the deal.
When it renewed the same contract last year, SSP required SSK to supply the company with critical production materials and consign state-of-the-art semiconductor manufacturing and testing equipment.
SSP manufactures dynamic random-access memory (DRAM) modules, memory component chips, memory solutions and secure digital (SD) flash cards for Samsung Electronics of South Korea.
The company said it booked a net income of $1.81 million in the first quarter of 2020, a reversal of the $345,210 net loss it recorded the same period last year. Its gross revenues grew 31% to $78.48 million due to a 48% increase in production volumes.
Shares in SSP at the stock exchange increased 15 centavos or 11.63% to P1.44 each on Tuesday.