Newly listed Phoenix Semiconductor forging new deals by Q1 2015
DEC 01, 2014 BY: DANESSA O. RIVERA, GMA News
The Philippine unit of South Korea's STS Semiconductor and Telecommunications Co. Ltd. expects to sign contracts with new partners – apart from Samsung Electronics Co. Ltd. – by the first quarter of 2015, a company official said Monday.
Newly listed Phoenix Semiconductor Philippines Corp. is now seeking new contract arrangements involving new customers, vice president and CFO Dongjoo Kim told reporters in a briefing after the company debut on the Philippine Stock Exchange.
"[We are currently talking with] one in Japan. We also have several players in the US – about two to three. Discussions currently underway for our expansion," he said.
"We will be able to close this no later than early next year... In the first quarter," he added.
Kim declined to disclose the name of the companies, "because they do not agree with this kind of idea," citing the new partners are all electronic companies.
Currently, the company serves 25 percent of the requirements of Samsung Electronics under a six-year supply contract until 2017.
"Samsung is our only customer but through Samsung, we also cater to other players. Since our contract will expire in 2017, we will be able to start talking by 2016 [for an extension]," Kim said.
Phoenix Semiconductor will invest at least $173 million for the Phase 2 expansion which will be partly funded by the proceeds from the initial public offering (IPO), company director Kyuho Han said in the same briefing.
The firm raised P1.02 billion after offering 324.76 million common shares late last month.
BDO Unibank Inc. senior vice president Daniel Lim noted Phoenix Semiconductor did not exercise its oversubscription allotment during the IPO since it plans capital after several local banks offered open credit facilities in favor of the company.
"The company felt it would be best to finance expansion program from equity and credit facilities offered by credit banks, which was a good signal because more banks were confident in the company," Lim said. – VS, GMA News
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SOURCE: http://www.gmanetwork.com/news/money/companies/390502/newly-listed-phoenix-semiconductor-forging-new-deals-by-q1-2015/story/
