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PSi Technologies Inc.

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Posted: December 12, 2006

PSi Technologies Inc.For 18 years, PSi Technologies Inc. (PSi) has been the leading provider of power semiconductor assembly and test services for the semiconductor market. Its comprehensively made products and services make PSi the choice and trusted partner of major semiconductor manufacturers around the world.

Despite stringent competition, PSi goes way beyond its competitors. Aside from supplying the best quality products and services, the company also ensures clients top-notch reliability and on-time delivery of their products.

Now, the company continues to grow as it employs over 3,000 workers in their two plant facilities situated in the Philippines’ industrial zones: Taguig and Laguna. PSi proves that they are the undisputed name in the semiconductor assembly and test industry.

Paving the way for electronics manufacturing outsourcing

Founded in 1988, PSi started out as a subcontractor for ICs (integrated circuits) assemblyPSi is located at two of Philippines' industrial zones: Taguig (upper left) and Laguna (lower right). and test. In the mid-90s, the company shifted direction to a bigger specialized segment, the power semiconductors. The company’s decision to venture into power semiconductors led to greater business opportunities and stable business partners.

Having realized that the power semiconductors are very useful to every electronic device, PSi began manufacturing power semiconductors for a diverse customer-base. The company has developed power semiconductors for automotive systems, consumer electronics, computer motherboards and peripherals, electronic office equipment and industrial products, and telecommunication and networking equipment.

Throughout the process of building state-of-the-art power semiconductors, many companies took notice and decided to tap PSi for their semiconductor needs. With its low-cost turnkey outsourced solutions for comprehensive package design, assembly and test, and shipment services, PSi enjoys strong customer relationships with the industry’s big names such as: Fairchild, Infineon Technologies, ON Semiconductors, Philips, STMicroelectronics, and Texas Instruments.

Gearing up for success

Building a strong bond with multinational companies wasn’t an easy task. Yet, PSi was able to pull it off by constantly showing potential clients high-quality products and services.

Although it proves to be a stable industry, the semiconductor market has always been challenging. As technology advances, changes, assemblies, and tests should be done in order to come up with a modern and upgraded device.

Competition is another pressing challenge in this industry. Aside from the Philippines, some Asian countries have stepped up the level of competition in electronics. China and Taiwan are among the popular countries that have improved their skills in electronics, high-tech facilities, and most importantly, have lower costs of labor and production that directly challenges Philippines’ outsourcing industry.

However, these are just a few of the company’s worries. For Freddie Canlas, PSi’s Sales and Marketing Head, they face a more challenging part of the business – strict customer requirements. Employing the company’s vision as to be the preferred supplier for power packaging solutions, the people at PSi ensures their clients they only get the best products and services.

“The market has always been challenging. Tough competition from places like China whose price is the biggest factor that we compete in. Of course, we follow stringent customer requirements, quality, delivery, and all different requirements. But with our new vision-mission and our quality philosophy, the strategy that you have to employ is to be the best over-all. We don’t intend to be another China. But we want to be the best in quality, delivery, reliability, and service level. We may not be the best in price but we should be the best in those other components,” Canlas proudly shares.

Throughout the experience of establishing what is now deemed as the largest power semiconductor company, PSi Technologies Inc. had set the standards of superior electronics manufacturing and placed the Philippines on the map of cutting edge assembly and test.

PSi, competing with the best in the world

According to Canlas, Filipino engineers are highly technical, competitive and advanced whenPSi acquires only state-of-the-art gadgets for the production of their power semiconductors. it comes to assembly and test. Many companies abroad tap Filipino talents because of their knowledge and interest in technology. For decades, our engineers have mastered the art and sciences of assemblies, thus, making Filipinos the best in this field.

“One of the best in the world! If not, the best in terms of technical competency in the assembly and test market… It has been 3 or 4 decades that we have mastered the science and art of assemblies. I think the Filipinos are best in this area and is arriving to the fact that there are thousands of Filipinos abroad working for multinationals and other local companies abroad. We are actually contributing a lot to the business of these companies, in the area of assemblies,” he states.

Filipinos are now advancing in the world of electronics. The Philippines may not be well known in the area of electronics. However through companies like PSi, Filipinos’ electronic and technical skills were nurtured and were able to produce highly advanced semiconductors and other integrated devices. As PSi showcases its products to its international market such as US, Europe, and other countries in Asia, the country is slowly emerging as the next electronics hub in the world.

“Well right now, I’m giving these global competitors a run for their money in terms of assemblies and tests. We are probably the best in this area, if not, one of the best in this segment,” Canlas predicts.

Although having established a stable business in the area of power semiconductor assembly and test, PSi is still on the road promoting the country’s potential in electronics. The company is actively participating in local and international trade fairs to showcase their products. Among the recent event they joined was the Industry Link goes to Semitech, a Center for International Trade Expositions and Mission (CITEM) delegation to Taiwan. This event highlights companies whose specialties are in the semiconductor sector of electronics.

Throughout Semitech, PSi got to know the Taiwan market, the trends, and business opportunities from which the company can be able to sell their products. PSi was also able to potential clients in Taiwan. Canlas hopes that after making a good impression to the Taiwanese market, PSi’ power semiconductors will be used in some of the biggest companies in Taiwan.

Canlas is happy with the support that CITEM gives to the electronics industry. “CITEM has always been supportive of us. When we went to Semitech, CITEM was also a part of that. The event for us was significant because CITEM was good in helping us promote our (participants) products.”

This month, PSi was also a participant at the 1st ASEAN Electronic Business Opportunities Exhibition and Conference (AE-BOEC) held at the Makati Shangri-la, Manila, Philippines.

Empowering electronics in the Philippines

PSi’s success in the power semiconductor market did not stop them from doing morePSi's power package solutions: Power QFNs and Powermites research and development of new, high-powered devices. The company wishes to come up with more advanced products that would satisfy the needs of their clients.

The company has been focusing on the expansion of their power semiconductor packages. It recently featured a new power package, Power QFN (Quad Flat No-Leads), which combines some of the best performance advantages of chip-scale packaging and multi-chip modules. This new package has an improved power handling and thermal advantages compared to the previous power packages PSi built. The Power QFN could be used in a variety of applications. These applications are cellphone, PDAs, portable music and video players.

Apart from producing new power semiconductors, PSi plans to tap the Japanese market. Since the electronics industry is huge in Japan, the company plans to sell their existing products and services.

“We want to come up with more advanced products for our customers that are of high-capabilities to be able for them to utilize our services… We want to do business with our existing customers, which, as of the moment is very large already. We also want to tap other markets, for example, the Japanese market. We want to have a good share on that market. We want to expand our existing capabilities,” Canlas insights.

Behind all these aspirations, PSi also wishes that SMEs in their industry would be able to share the same success like they did. It may tough at first because of the stiff competition among electronics companies and the unpredictable market. But setting up small goals such as product design and test development outsourcing, SMEs will soon be recognized in the market as assembly and test manufacturers.

“It would be good for our SMEs to start from an activity that doesn’t require much capital. One of those is product design, test development, outsourcing services from companies and countries. Eventually, revenues will come in for the company to grow and will be able to really be ready for complete service activities. Start small, grow, and then…grow bigger,” Canlas suggests.

At this point, PSi enjoys the achievements that the company has raked throughout the years. It wasn’t easy to create a name in the industry. Yet, the company’s multi-talented workforce was able to work tirelessly in creating innovative devices for everyday applications. PSi – a noted brand in semiconductors, a pioneer in advanced electronics!

PSi Technologies, Inc.’s main headquarters is located at Electronics Ave., FTI Special Economic Zone, Taguig, Metro Manila, Philippines. For more information on the company, products and services, you may contact the Sales and Marketing Dept. at: (632) 838-4688 / (632) 838-4694; fax: (632) 838-4648; email: fmcanlas@psitechnologies.com.ph. Or visit their website at www.psitechnologies.com.

PSi also has another plant site located at Lot B2-5, Carmelray Industrial Park II, Barangay Tulo, Calamba, Laguna, Philippines.

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