28.5 C
Friday, October 7, 2022

Investment of Taiwanese telco firm in PHL hits $45 million–BOI

- Advertisement -

A Taiwanese telecommunications and broadband equipment manufacturer has invested a total of $45 million since setting up shop in the Philippines nearly two years ago, the Department of Trade and Industry’s (DTI) Board of Investments (BOI) said.

Sercomm, a publicly listed Taiwanese firm and the parent company of Sercomm Philippines, has also recently seen its production of networking and broadband equipment reach 10 million units. In 2019, the telco firm opened its facility in Carmelray Industrial Park 1 in Calamba, Laguna.

“The company is at the forefront among Taiwanese companies that have decided to establish their manufacturing bases to the Philippines growing rapidly in the past two years since inception. This is an excellent example for other companies still considering to make the Philippines their second home,” Trade Secretary and BOI Chairman Ramon Lopez said in a statement on Monday.

Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said the decision of Sercomm “to put up a Philippine facility barely 2 years ago, played a major part of its global operations as validated by the numbers in its recent filing.”

“Recognizing the opportunities then and the ability to meet global demand by strategically growing their capabilities in the Philippines in support of their global supply chain in a relatively short period has certainly contributed to these milestones.”

James Wang, chief executive officer of Sercomm, said the company intends to further expand operations both in the local and global markets to support business growth. “We are very proud to have achieved the production milestone in such a short time, especially during this unprecedented time.”

Sercomm Philippines, considered a professional consumer premise equipment manufacturing site, uses automation facilities that specialize in wireless devices.

The Taiwanese telco firm, headquartered in Taipei, employs 2,000 workers in its Philippine facility. It has also presence in North and Central America, Europe and the Asia Pacific.

Last year, Sercomm raked in $1.27 billion in revenues. As of end-February, the firm saw its topline figures grow by 41 percent to $219 million, from $155 million year-on-year.

Rodolfo is expecting more investments to flow into the country following the signing of Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act into law last week.

Following the enactment of CREATE, the corporate income tax rate is reduced to 20 percent from 30 percent for domestic corporations with net taxable income of P5 million and below and have total assets of P100 million and below effective July 1, 2020. All other local firms and resident foreign companies are imposed with a 25-percent income tax.

The BOI and Philippine Economic Zone Authority approved investments amounting to a total of P1.11 trillion last year, which is 11.7 percent lower than P1.26 trillion both agencies booked in 2019.

Read full article on BusinessMirror

- Advertisement -
- Advertisement -

Related Articles

- Advertisement -
- Advertisement -

Latest Articles

- Advertisement -