C00135-2017

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Jan 11, 2017
2. SEC Identification Number
CS201000985
3. BIR Tax Identification No.
007-582-936
4. Exact name of issuer as specified in its charter
PHOENIX SEMICONDUCTOR PHILIPPINES CORP.
5. Province, country or other jurisdiction of incorporation
Pampanga, Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
Panday Pira Avenue, corner Creekside Road, Clark Freeport Zone, Pampanga Postal Code 2009
8. Issuer's telephone number, including area code
045-499-1742 / 045-499-1746 / 045-499-1822
9. Former name or former address, if changed since last report
Not Applicable
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common Shares 2,165,024,111
11. Indicate the item numbers reported herein
Item 9. Other Events

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Phoenix Semiconductor Philippines Corp.PSPC

PSE Disclosure Form 4-31 - Press Release References: SRC Rule 17 (SEC Form 17-C)
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

PSPC Commences Phase 2 Expansion Project
Background/Description of the Disclosure

Listed semiconductor company Phoenix Semiconductor Philippines Corp (PSPC) announced that it is proceeding with the construction of its Phase 2 Expansion Project in its manufacturing center in Clark Freeport, Pampanga to expand manufacturing capacity for clients other than Samsung South Korea in 2017.

The Phase 2 Expansion Project consists two stage-expansion plan with the construction of the manufacturing building with an initial production footprint of 18,000 sq. meters, a new 1,000 sq. meter warehouse and the expansion power utility building set for completion in 2017.

“The commencement of the Phase 2 project is a clear testament of the commitment of PSPC and its major shareholder, SFA Semicon Co., Ltd of Korea, to continue with its investments and to expand its presence in the Philippines,” declared PSPC President Byeongchun Lee.

Mr. Lee said that PSPC is in advanced stages of negotiations with new customers that will take up production capacity of the initial phase of its Expansion Project. He also added that the new facility will also house production capacity for SFA Semicon’s semiconductor assembly and packaging contracts in line with its global manufacturing realignment strategy which plans to see PSPC diversifying to mobile semiconductor products. This is while preserving PSPC’s strong relationship with global leader Samsung Electronics of Korea.

“PSPC is foreseen to be a manufacturing hub of the SFA group in Asia providing state-of-the-art semiconductor assembly services to Samsung and other electronics companies around the world,” PSPC President Lee said.

Pending the finalization of the building’s architectural and engineering plans and the signing of main construction contract, project mobilization and civil and foundation works have been started.

The Expansion Project is expected to be completed by end of August this year, after which ramp up of production equipment and ancillary utilities and support facilities is expected to be started immediately in anticipation of incoming production orders.

Financing for the construction of the initial building of the Expansion Project is sourced from the Company’s initial public offering in December 2014 and from retained earnings from past years of operations. The Project was delayed due to the slowdown in the global semiconductor industry.

The Company anticipates the global semiconductor industry to continue on its recovery path within 2017.
Other Relevant Information

None.
Filed on behalf by:
Name Anna Gayle Barin
Designation Assistant Corporate Secretary