MANILA, Philippines - For over 30 years, one of the leaders of the semiconductor industry, Texas Instruments (TI) has been satisfied with doing business in the Philippines and intends to stay on even longer.
The company is in the process of expanding its operations in the country and at least for the next 10 years, will put in $1 billion in new investments on top of the $400 million that it has already spent for its plant in Clark, Pampanga.
TI Philippines president and managing director Norberto “Bing” Viera, in an interview said that the company’s experience in the Philippines over the past 30 years has been good.
Viera credits several factors to the willingness of TI to stay in the Philippines, including a skilled and industrious workforce and a government that was very helpful at all stages of their operations.
For the most part of the company’s presence in the country, it was operating a plant in Baguio City.
TI has since grown to become the fourth largest semiconductor company in the world, with annual revenues amounting to somewhere near $12 billion worldwide.
Viera said that the company started looking for a new site that would serve as a major processing unit in the region and after looking at what everyone had to offer, the choice was narrowed down to two countries, one of which was the Philippines.
He said that the other country was offering very competitive incentives to locate there.
But in the end, management decided to go to the Philippines because of the aggressiveness of the concerned government officials, one of which was President Arroyo.
Viera said that then Trade Secretary Peter Favila was very helpful in facilitating all the requirements needed by the company to operate in the country and that President Arroyo was actively involved in the process.
He said that Favila and the President were always very accommodating and made the process of operating the country painless.
Viera recalled that the negotiations with the government started in January 2007 and by April, an agreement was signed and a few months later, they were able to break ground for the development of the Clark site.
In October 2008, TI completed the construction of its 77,000-square feet building facility that cost the company $400 million.
Viera said that the building is LEED or Leadership in Energy and Environmental Design certified, the first of its kind in the country.
With its completion in just 18 months, Viera said that TI has set a benchmark in terms of speed in putting up such a huge facility.
For the next 10 years, Viera said that TI would put in another $1 billion for its expansion program, which includes setting up another facility in Baguio and the hiring of over 3,000 workers.
He said that the TI experience in the country is an example of how the government was able to support the investors and keep them in the country.
“Our experience was very pleasant as far as the President’s support to the industry (was concerned). For 30 years, our experience was great and we did not have any bad experience with the government,” Viera said.
“I’m sure that a lot of companies are very bullish about what’s happening in Clark. Hopefully these things would continue,” he added.
He said that another big semiconductor company would also be locating in Clark soon.
While the government would not confirm the identity of the potential locator, it is widely known that the government has been courting Korean giant Samsung to put up its plant in Clark.
In her various speeches over the past few months, the President has stated that one of her legacies is the stability of the economy.
Mrs. Arroyo said that she has turned the economy around from being the laggard to one that is poised to join the ranks of the first world in 20 years.