Laguna-based Cirtek Holdings Philippines Corp. on Thursday said it continues to collaborate with its customers to address the global chip shortage, which will dictate the pace of the expansion of its semiconductor operations.
The company said its semiconductor unit Cirtek Electronics Corp. started procuring additional equipment in the first quarter to meet the surge in demand from its customers. The Cirtek Group’s manufacturing facilities are currently running at full capacity.
The new equipment will enable the company to expand capacity by 25 percent in the second half of 2022. This expansion is complemented with booked orders received during the first quarter.
Cirtek’s Senior Vice President for Marketing Tony Callueng said the company secured three new customers, which are among the major telecom players in Europe, early this year.
“Due to the industry’s bullish outlook, supply chain backlogs and chip demand outpacing supply, customers have even started to consign equipment to Cirtek as insurance for production capacity on top of Cirtek’s own internal equipment,” the company said.
According to Cirtek, devices and appliances being connected to the internet, 5G wireless communication devices, medical devices and wearables are increasingly becoming popular among consumers.
Integrated Circuit (IC) Insight’s market research report noted that the worldwide semiconductor market is expected to rise by 24 percent this year which will be driven by a 21-percent jump in shipments and a 2-percent increase in average selling price.
The said growth rate would be the third largest increase in the global IC market over the past 16 years, being surpassed only by the 33-percent surge in 2010 and the 25-percent increase in 2017, the study said.
The company said it was able to ramp up production despite the pandemic as it provided aid to its employees and families affected by Covid-19. Cirtek recently set-up a quarantine pantry for personnel who are required to undergo quarantine in compliance with the health protocols set by the government for people in close contact with Covid-19 patients.
These employees, who are not allowed to work temporarily, were given cash, food, vitamin supplements and protective equipment funded by voluntary contributions from both management and staff.
In addition, the company’s medical team continues to care for its employees through continuous health monitoring, screening and distancing, maintaining virus-free facilities, it said.