1999-05-06 , ESC-9970
Business News From Philips Semiconductors

Philips Semiconductors today formally opened its new Test and Assembly plant for Integrated Circuits (ICs) based at Calamba in the Philippines at a ceremony to mark the occasion.

Commissioned in November 1997, the new plant was completed exactly to schedule. Once fully operational by the end of 2000, over 285 million EUR (300 million USD) will have been invested, and the plant will supply ICs across the world to leading automotive, telecommunications, computer and consumer electronics manufacturers.

Following over two years' research into the most efficient designs for its assembly and test lines, Philips Semiconductors has implemented its unique Factory 2000 system that assures the quality of its products with minimal work-in-progress and handling during manufacturing. The result is an operation with reduced production costs and increased flexibility. And with over 80 per cent of investment in the plant being used to procure the most modern equipment available, production facilities at Calamba are state-of-the-art.

The facility will employ 1,500 staff by the end of 2000. According to the company, the skills available among the local workforce were an essential part of the decision to locate in the Philippines. Ger Schonk, Senior Vice-President of Philips' Assembly and Test Product Division comments:

"Our belief in the ability and resilience of the local workforce is demonstrated by the fact that almost our entire operation in Calamba will be managed and run by Filipino staff. Just as we have invested in the new building and the latest technology, so we will continue to invest in the future of our staff by training them to become multi-skilled and multi-functional."

Calamba is Philips Semiconductors' third IC Test and Assembly plant. Others are located in Kaohsiung, Taiwan, and Bangkok, Thailand. The plant will initially concentrate efforts on assembling the most complex plastic Quad Flat Pack ICs, however full flexibility in assembly and test lines will ensure that other future demands can be met.

As Arthur van der Poel, Chairman and Chief Executive Officer of Philips Semiconductors commented at the opening ceremony: "This will be our second major investment in the Philippines - a plant at nearby Cabuyao, produces discrete elements devices. Towards the end of this first phase of our plans for Calamba, we aim to assemble ICs with an estimated sales value of 0.94 billion to 1.4 billion EUR (1-1.5 billion USD) a year. And with plans for a second phase already underway, our capabilities in the Philippines will play a crucial role in our strategy to provide the best possible semiconductor solutions for our world-wide customer base".

Philips Semiconductors, a division of Royal Philips Electronics, headquartered in Eindhoven, The Netherlands, is the eighth largest semiconductor supplier in the world. Philips Semiconductors' innovations in digital audio, video, and mobile technology position the company as a leader in the consumer, multimedia and wireless communications markets. Sales offices are located in all major markets around the world and are supported by systems labs. Additional information on Philips Semiconductors can be obtained by accessing its home page at  http://www.semiconductors.philips.com