South Korean Phoenix Semiconductor Philippines Corp. said it does not supply semiconductor devices for Samsung’s Note 7, the newest model of the mobile-phone giant that was recalled due to battery problems.
Samsung, as a result of the defect, had to shut down production of the Note 7 on safety concerns and put on hold all sales of the product, which included the Philippine market.
Phoenix mainly produces parts for the electronics titan, which take a huge chunk of its revenues from smartphones.
“The company reassured the investing public that Phoenix Semiconductor is not in any way affected by the reported product pullout,” it said.
“The memory cards currently under contract production are principally used in servers, high-end desktop PCs [personal computers] and laptops,” it said.
The company earlier said it expected to manufacture 130 million units of the next-generation DDR4 8 and 4-gigabyte dynamic random access modules (DRAM) and flip-chip memory chips and memory cards in the third quarter.
“The purchase order for the period did not include any components for the Samsung Note 7,” it said, adding that it will disclose actual production for the period upon confirmation of shipment data by next week.
The company is expanding its facility in Clark Field in Pampanga to accept more contracts, possibly from other firms other than Samsung, which previously owned Phoenix before spinning it off.
The expansion project consists of a new process building to house about 40,000 square meters of production floor space for semiconductor assembly and test facilities for its future customers.
In June the company said it has increased the capacity of its factory after it secured the contract renewal of Samsung.
The company said it added a new line of equipment for a new generation of memory chip DRAM, which will manufacture 38 million DRAMs per month, or a 73-percent increase in manufacturing efficiency compared with old machines. DRAM is mostly used in PCs and servers.