International corporation, Panjit, establishes chip production line in the Philippines, catering to the rising demands within the automotive industry

Panjit International Expands Production Capacity with Strategic Partnership

In a move to bolster its semiconductor production and ensure industry stability, Panjit International has established a new production line in collaboration with Automated Technology (Philippines) (Atec) in Cabuyao City, Laguna province.

The agreement between Panjit and Atec includes flexible process change management, joint forecasting, confidentiality agreements, and provisions for engineering adjustments. This strategic partnership is designed to foster innovation, quality, and operational excellence, with the transfer of process control, technical expertise, and operational know-how from Panjit's Taiwanese base to Atec.

The manufacturing line, strategically established outside geopolitical hotspots, minimizes exposure to regional disruption and ensures uninterrupted operations and supply stability. The cleanroom features advanced production lines designed for manufacturing SOT-23 and DFN surface-mount semiconductor packages.

Cesar Vizcarra, director of quality and engineering at Panjit, stated that currently, significant volumes of SOT-23 and DFN devices are being produced each month. Atec's contribution to Panjit's product lines such as the SOT-23 and DFN products is approximately 8%.

Control over semiconductor technology is seen as a key geopolitical asset for future industry stability and security. The agreement enhances supply chain resilience during a period of global market fluctuations, ensuring a reliable flow of advanced semiconductors critical for automotive applications amid these global supply constraints.

Panjit is seeing an increasing demand from end-users outside greater China and is developing services for customers in any region where costs are favorable to end-users. To diversify raw material supply and increase resiliency against disruption, efforts were made to qualify and validate raw materials beyond Taiwan.

In addition, Panjit International has appointed Unimicron Technology Corporation in the Philippines as a second supplier for the production of automotive-grade semiconductors. This new capacity in the Philippines accounts for approximately 2% of Panjit's total output.

The strategic approach aims to enhance Atec's operational independence, increase manufacturing agility, and build resilient production capacity to meet evolving customer demands proactively. Over the past three months, Atec has consistently demonstrated its ability to deliver high-volume output and operational stability.

Panjit manufactures over 3,500 automotive-grade discrete semiconductor products, with around 7.5 billion being sold directly to the automotive industry. In 2024, the company shipped 25 billion discrete products in 11 different package types.

This expansion comes at a time of geopolitical and trade tension, particularly in response to US restrictions on the import of sophisticated semiconductors and China's ban on the export of critical raw materials. The agreement provides supply chain resilience during these challenging times.

International corporation, Panjit, establishes chip production line in the Philippines, catering to the rising demands within the automotive industry