South Korea's Samsung Electronics is considering investing $1 billion in the Philippines to build a semiconductor factory. Samsung's investment is likely to be a back-end chip packaging test plant.
Comprehensive foreign news reported on June 23, South Korea's Samsung Electronics is considering investing 1 billion US dollars in the Philippines to build a semiconductor factory. It is unclear whether Samsung Electronics is a front-end process (chip manufacturing) or a back-end process (packaging test) for semiconductor manufacturing. However, many people in the industry believe that Samsung’s investment is likely to be a back-end chip packaging test plant. .
In the past few years, the Philippines has been a hot spot for major giants to build chip packaging and testing plants, but the country is now losing its competitiveness in attracting investment to China, Vietnam and other countries. The main problem is that labor costs in the Philippines are rising and power supply is also problematic. Although after many years of negotiations, the Philippine government has not attracted a giant to invest in building a chip manufacturing plant.
It is also known that Intel plans to reduce the size of its packaging and testing plants in the country, which is a big blow to the Philippine semiconductor industry.
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