Samsung Electro-Mechanics Philippines Corp.’s (SEMPHIL) P50.7-billion expansion is starting to draw interest from its Korean supply chain, with about 30 Tier 1 suppliers of parent Samsung Electro-Mechanics Co. Ltd. (SEMCO) expected to come to the Philippines in October to assess potential local investments.
The Philippine Economic Zone Authority (PEZA) said the suppliers will conduct due diligence during their planned visits, including evaluating whether to establish operations closer to SEMPHIL.
The prospective investors include manufacturers of semiconductor chemicals, printed circuit board surface-treatment materials, precision industrial components, and other specialized inputs.
The planned supplier visits followed PEZA’s three-day investment mission to South Korea from Aug. 25 to 27, which included meetings with SEMCO executives at its headquarters in Suwon.
SEMCO presented a positive outlook for its multilayer ceramic capacitor business amid rising global demand from artificial intelligence servers and automotive electronics, reinforcing the role of its Philippine operations within the company’s global manufacturing network.
PEZA Director General Tereso Panga said attracting suppliers alongside anchor manufacturers could broaden the economic impact of major investments through additional capital, exports, high-value jobs, and stronger local industry linkages.
Beyond the SEMCO supply chain, PEZA’s mission also engaged companies exploring investments in manufacturing, semiconductor materials, IT, and other industries.
These included Geumjeung Industrial Co. Ltd., a South Korean manufacturer of plastic films for the food and beverage industry that supplies major beverage brands and is exploring the Philippine market; a producer of PCB adhesives and specialty tapes; and GAON Cable, South Korea’s oldest cable manufacturer, which is assessing opportunities in the Philippines.
PEZA also met with a diversified South Korean firm with interests including high-end golf resort development and an affiliate involved in semiconductor materials and IT manufacturing.
The agency likewise held discussions with Jipyong LLC, a South Korean full-service law firm, on PEZA’s one-stop-shop services and possible cooperation in promoting the Philippines to Korean companies considering overseas expansion.
The expected October visits could provide an early indication of whether SEMPHIL’s expansion will generate follow-on investments from Korean suppliers seeking to locate closer to a major customer.
