The EMS Group, a leading electronics, semiconductor and medical subcontracting conglomerate, said it secured $1.6 billion worth of investments from three international companies.
The conglomerate said it concluded negotiations with an American and a Japanese semiconductor companies, securing a combined investment of $800 million. It also confirmed another $800-million investment from a European consumer care product manufacturer.
“These investments are projected to create up to 3,000 new jobs in the semiconductor projects alone, with the potential for double that number in the consumer product manufacturing deal,” said EMS Group president and chief executive Perry Ferrer.
The influx of capital is particularly noteworthy as the two semiconductor companies, originally based in China, are shifting their focus to the Philippines. The strategic move to the Philippines is driven by the geopolitical climate and the desire to diversify supply chains.
By establishing a manufacturing base in the Philippines, the companies aim to protect their market share from potential disruptions caused by trade disputes.
The initial stages of the semiconductor projects are underway, with $150 million to $180 million already invested. Full production is anticipated by 2026. The companies, through EMS, are conducting low-rate production and testing the feasibility of manufacturing in the Philippines.
The investments will focus on manufacturing power integrated circuits (ICs) for the automotive industry, including components for electric vehicles.
While the products are derivatives of existing models, the Philippines will be the first location to manufacture using a specific process. Production using the specific process will start in June 2024.
Meanwhile, the European consumer product company will transfer another segment of its production line in the Philippines in the second half of 2024 for a personal grooming product for women.
It will be its third subcontracting operations in the Philippines, following the establishment of two main production lines for home consumer products.
Finished products will be exported to the US, EU and Japan. The European company manufactures its proprietary motor, which is then sent to production hubs like the ones in the Philippines.
The European company is constructing a massive factory at First Philippine Industrial Park (FPIP), which will house both motor production and research and development activities.