50 years Supporting Global Semicon Industry & Strong COVID19 Response, the Philippines is a valuable partner in SE Asia
Panel discussion on key advantages of the Philippines as a partner for global companies looking to establish presence in Southeast Asia, as presented from the perspective of ATEC Semiconductor, a top-tier Philippine semiconductor firm
“The Philippines has been a strategic partner for global electronics companies since the 1970s when multinationals mainly from the US and led by Texas Instruments, Intel and Fairchild set up their assembly plants in the country. Companies from our neighbors in Asia followed suit. With the establishment of Filipino firms and multinationals providing a competitive balance in the business, the industry’s position as a vital and growing high-technology sector has been firmly established,” Philippine Trade & Investment Center Silicon Valley Trade Commissioner Celynne Layug said at the Make it Happen in the Philippines online business dialogue entitled, “Philippines 50 years of Supporting the Global Semiconductor Industry” which was held on 27 October 2021.
The Make it Happen in the Philippines Business Dialogue Series showcases key advantages of the Philippines as a partner for global companies looking to establish their presence in Southeast Asia, as presented from the perspective of industry representatives. The latest business dialogue looked at these advantages from the viewpoint of ATEC Semiconductor, a top tier Philippine semiconductor firm.
ATEC is a Philippine-based company founded in 1996 providing world class assembly and test services for the semiconductor industry. ATEC also builds electronics products through a separate division that focuses on RF microwave technology. ATEC's manufacturing facilities are located in the Laguna Industrial Science Park, a free-trade zone some 30 mile south of Manila and within easy reach of major seaports and airports.
ATEC’s semiconductor division offers IC assembly, packaging and test services for their customers. Other services include die cutting, wafer sorting, lead frame plating, wafer backgrinding, failure analysis and test, and finished goods inventory management that includes drop shipping products to global end customers. The automotive industry is a key business sector for ATEC's OSAT services.
“ATEC currently has 1,724 employees. Our strong employee profile reflects high literacy with strong English communication skills which enables high competency in the production area as far as understanding and implementing product and process requirements which are essential to ATEC’s 24x7 operation and in meeting if not exceeding customers quality expectations,” Ms. Ana Santana, VP for Sales & Customer Service, shared during her presentation.
Mirroring the strong growth of the Philippines semiconductor and electronics sector, ATEC shared that their financials grew 15% in 2020 with a projected 20% growth planned for 2021. Growing demand from existing customers is driving growth as well as demand from new customers. ATEC is well-positioned to support new and urgent customer requirements.
Ms. Santana added that ATEC’s response to Covid 19 was rapid and decisive. To ensure the safety and productivity of its employees ATEC installed air-conditioned vans to temporarily house employees during constraints placed on travel during the early days of the pandemic. Recently, ATEC purchased vaccines for employees as encouraged by the Philippine government. To date, 87% of ATEC employees are vaccinated and the company is on track for 100% vaccination by the end of this year.
The Filipino talent and work ethic is a differentiator for ATEC as a global OSAT firm. The Philippines has a national workforce of some 45 million highly-skilled and educated, dedicated and cost-efficient people with relatively low turnover and attrition rates. The young and dynamic population not only boosts domestic consumption and local demand but also continues to use innovation as an engine for growth. This year, the Philippines placed 51st out of 131 countries in the Global Innovation Index.
ATEC offers flexibility and can customize its services based on unique customer requirements. The pandemic impacted the global supply chain both in terms of delays in shipments of semiconductor raw materials and wafers from the foundries. ATEC's emphasis on supply chain transparency and effective communication with suppliers and customers enabled it mitigate supply constraints. Relationships built on trust and performance result in win-win solutions for supplier, ATEC and customer alike.
ATEC’s valued customers include top global firms such as ON Semiconductor, Analog Devices, Taiwan Semiconductor and Rochester Electronics among others. The client portfolio reflects ATEC’s commitment to reliability, employee welfare and future-forward environmental and sustainability policies.
ATEC welcomes the opportunity to partner with high technology startups, opportunities that drive competitive advantage for ATEC and the Philippines. Mr. Edmon Salimo, ATEC's VP of Engineering, noted that Non-Disclosure Agreements are a standard part of the process when signing up a new customer. Moreover, ATEC protects customer Intellectual Property as a key part of the relationship. ATEC will also set up captive manufacturing lines based on customer requirements that include assigning dedicated engineers and production personnel to ensure the success of the program.
To learn more about the Philippines key advantages for the semiconductor industry and detailed information on ATEC’s capabilities and industry certifications please visit the online recording of the webinar at https://youtu.be/HcRYAMls-bo.
The Philippine Trade and Investment Center (PTIC) in Silicon Valley organized the webinar as part of the Make it Happen in the Philippines Dialogue Series.
May Nina Celynne Layug
Philippine Trade & Investment Center-San Francisco
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Make it Happen in the Philippines online business dialogue “Philippines 50 years of Supporting the Global Semiconductor Industry”
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