South Korean chip giant Samsung Electronics Co. Ltd. is mulling over plans to invest $1 billion in a semiconductor plant in the Philippines, according to a report from Reuters.
The report did not specify whether the plant is a front-or back-end facility. But most believe that Samsung is looking to build a back-end test and assembly plant in the Clark Special Economic Zone in that nation, according to the Sun.Star.

For years, the Philippines has been a haven for back-end assembly. Intel, TI and others have plants in that nation.

Once one of hot spots for IC test and assembly, the Philippines has somewhat lost its competitiveness to China, Vietnam and other nations. The Philippines suffers from a range of issues, including soaring labor rates and electricity problems.

After years of talk, the Philippines has yet to build a front-end semiconductor plant due to infrastructure problems.

And in another blow, Intel is said to be "ramping down" its IC-assembly and test facility in the Philippines, according to the Philippine Daily Inquirer.

Last year, however, Texas Instruments Inc. said it would expand its IC-assembly and test operations in the Philippines by building a new plant at a cost of $1 billion.

Seeking to meet exploding demand, solar-cell supplier SunPower Corp. said it plans to build its third solar cell fabrication plant in Malaysia. Until now, SunPower's production plants have been located exclusively in the Philippines.

Source:eetimes