Allegro gets tax perks for P2.6-B investment in Phl

MANILA, Philippines –  The Board of Investments (BOI) has given tax breaks to American firm Allegro Microsystems Phils Inc. for its P2.6- billion investment in the country.

Allegro is the subsidiary of Allegro Microsystems Inc. (AMI) of the United States. It is involved in the manufacturing of electronic components and sub-assemblies.

The P2.6-billion investment is for the expansion of its existing operations here. This project will require a capital outlay of about P400 million for buildings and about P2 billion in the form of machineries and equipment.

At full capacity the investment is expected to generate additional employment for 1,113 workers. Commercial operation for the expansion is projected to start in June 2011.

Currently, the firm has several registrations with the BOI, covering the manufacture of semiconductor devices such as integrated circuits (IC), sensors, discretes and gear tooth sensors or GTS Devices. The ICs are used to modify electric signals through amplification, oscillation and switching while the sensors, discretes and GTS Devices are magnetically activated circuits that convert mechanical motion to electronic signals by sensing switches in magnetic field.

As a result of anticipated increase in the demand for gear tooth sensors or GTS, the management decided to increase the capacity of the firm’s existing facility at Sampaguita Street, Marimar Village, Bicutan, Parañaque City by constructing a new building to accommodate additional machineries and equipments.

Gear tooth sensors are commonly used in automotive applications as well as industrial applications for sensing the presence of position gears in machinery. Usually, these devices are engineered to suit special needs of clients.

The American-owned corporation intends to export 100 percent of its production to Allegro Microsystems Inc., USA, the major stockholder of the applicant firm.

The company was founded in 1990 and is headquartered in Worcester, Massachusetts. It has sales, design, and marketing offices in Scotland, the United Kingdom, France, and Argentina, as well as facilities in Worcester, Massachusetts; Manchester, New Hampshire; Warminster, Pennsylvania; the Philippines; Surrey, the United Kingdom; Musselburgh, Scotland; and Park Nord Annecy, France. The company operates manufacturing plants in New Hampshire, Pennsylvania, and the Philippines. Allegro Microsystems Inc. is a subsidiary of Sanken Electric Co. Ltd.