SAMSUNG Electro-Mechanics Philippines Corp. (SEMPHIL) is investing P50.7 billion in a Philippine manufacturing facility for automotive multilayer ceramic capacitors (MLCCs), according to the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA).
The manufacturing plant is expected to begin commercial operations by July 2027 and will generate over 3,500 jobs, OSAPIEA said in a statement over the weekend.
MLCCs are key components in electric vehicles and smart devices.
The investment commitment was finalized during the Philippine delegation’s meeting with SEMCO’s top executives on the sidelines of the 32nd APEC Summit in South Korea.
“The products that they make in the Philippines are of the highest tech that you can imagine. And so that is very, very important for us,” President Ferdinand R. Marcos, Jr. told reporters after the meeting.
Samsung also committed to partner with universities to train Filipino workers and conduct research and development, Mr. Marcos added.
SEMPHIL, the Philippine subsidiary of Samsung Electro-Mechanics Co. (SEMCO), is based in the Calamba Premiere International Park and is registered with the Philippine Economic Zone Authority.
At the end of 2024, SEMPHIL employed 7,000 workers and accounted for nearly half of SEMCO’s worldwide MLCC output, OSAPIEA said.
The investment pledge is also the first to receive fiscal incentives under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act.
Under the law, the President may grant tax incentives in the interest of national economic development or as recommended by the Fiscal Incentives Review Board.
Qualified projects are eligible for incentives such as Income Tax Holidays, the Special Corporate Income Tax, and Enhanced Tax Deductions.
Perks also include value-added tax (VAT) zero-rating on local purchases, as well as VAT and duty exemptions on imports.
PEZA Director General Tereso O. Panga called the investment a “landmark achievement for the electronics sector,” noting that the expansion will “strengthen the Philippines’ position in the global semiconductor value chain and create more opportunities for Filipino talent.”
In 2024, electronic products remained the Philippines’ top export, accounting for nearly 60% of total shipments, according to the Philippine Statistics Authority. — Beatriz Marie D. Cruz