Regional semiconductor sourcing
Panjit International secures chip line in Philippines to meet auto demand
Amid shifting trade dynamics and escalating EV semiconductor demand, the new partnership enhances Panjit's global supply strategy with added capacity and regional diversification.
Taiwanese semiconductor supplier Panjit International Inc.(Panjit) has secured additional production capacity in the Philippines to meet demand from its automotive customers, which has grown significantly because of the growth in electric vehicle (EV) manufacturing.
The company has secured a dedicated 1,000 sq.m cleanroom at a facility operated by Automated Technology (Atec) for the production of Au-grade semiconductor products. It is located in Cabuyao City, Laguna province. The cleanroom is equipped with a specialised production line for manufacturing SOT-23 and DFN surface-mount semiconductor packages.
“Currently our capacity stands at approximately 40m units per month for SOT-23 and 14m per month for DFN devices, totalling about 600m units annually,” said Cesar Vizcarra, director of quality, management, R&D for the Process Engineering division at Panjit International. “Over the past three months Atec’s monthly production has averaged 38m units, demonstrating consistent high-volume output and operational stability.”
The company has secured a substantial and dedicated cleanroom at a state-of-the-art facility operated by Automated Technology (Philippines) (Atec) for the production of automotive grade semiconductor products. Strategically located in Cabuyao City, Laguna province, the cleanroom features advanced production lines designed for manufacturing SOT-23 and DFN surface-mount semiconductor packages.
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“Currently, our operations are running at a high-capacity level, with significant volumes of SOT-23 and DFN devices being produced each month” said Cesar Vizcarra, Director of Quality and Engineering at Panjit. Over the past three months, ATEC has consistently demonstrated its ability to deliver high-volume output and operational stability, with average monthly production levels that meet our quality and manufacturing requirements.
This new capacity in the Philippines accounts for approximately 2% of Panjit’s total output. In 2024 the company shipped 25 billion discrete products in 11 different package types. Around 7.5 billion are sold directly to the automotive industry. These automotive-grade discrete products are predominantly used in body and comfort applications, as well as infotainment, lighting and powertrain systems. Specifically for product lines such as the SOT-23 and DFN products, Atec’s contribution is approximately 8%.
“While these figures may seem modest at this stage, it is important to recognise that this is just the beginning,” said Vizcarra, adding that the company was looking strategically at scaling production. “Our collaboration with Atec is designed to adapt swiftly to market opportunities and strengthen supply chain resilience, paving the way for sustainable growth and increased impact in the near future.”
Panjit manufactures over 3, 500 automotive-grade discrete semiconductor products. While the company does not sign exclusive contracts directly with automotive manufacturers, Panjit has non-disclosure agreements (NDAs) in place with over 50 automotive companies.
EV applications
The growth in EV production has dramatically boosted demand for more valuable automotive semiconductors. Panjit’s product line includes both integrated circuits and discrete components, with sales to the automotive industry primarily made up of the latter.
“What once was a $100 component in traditional cars soared to $1,000 in EVs, and then, as the industry evolved, climbed to $1,500,” said Brian Lin, director of corporate marketing department at Panjit.
In 2024, Panjit’s revenue reached $404m, with automotive revenue accounting for 30% of that total. That percentage or revenue stood at 32% for the first quarter of 2025 and the company projects that to keep runup over 32% this year. The main part of its automotive revenue comes from China, Korea, Europe and the US.
The six categories of product made in the Atec cleanroom (see box) are housed in various package types, including the aforementioned SOT-23, and DFN3333-8L and DFN5060-8L. In total there are 17 distinct products manufactured on the captive line.
“Looking ahead, we plan to add two more package types this year, bringing the total number of products produced in-house to over 25,” said Vizcarra. “Currently, our primary focus for these components is the EV automotive sector, specifically for body and comfort applications. This includes crucial components like USB chargers, electrical seats, HVAC systems and inverter control boards.”
Supply chain strategy
The strategic partnership with Atec is designed to foster innovation, quality and operational excellence, according to the company. The agreement facilitates the transfer of process control, technical expertise and operational knowhow from Panjit’s Taiwanese base to Atec, accelerating its understanding of product processing at the parent facility.
“While Atec brings over three decades of industry experience, the knowledge transfer ensures both sites are aligned in managing processes and product quality effectively,” said Vizcarra. “The collaboration includes the deployment of advanced manufacturing facilities, strict adherence to international quality, product and environmental standards, and ambitious yield targets of at least 99.5%.”
The agreement also encompasses flexible process change management, joint forecasting, confidentiality agreements and provisions for engineering adjustments. Panjit said that creates a dynamic environment capable of adapting to evolving technological and customer requirements.
In terms of raw material sourcing, during the early production process the Atec line relied on raw materials supplied by Panjit from Taiwan, ensuring established process controls on quality and stability. However, to diversify that raw material supply with aim of greater resiliency against disruption, efforts were made to qualify and validate raw materials beyond Taiwan. Along with that, the company said that ongoing personnel training, process validation and technical development are focused on establishing Atec’s standalone operational competence, ensuring full technical independence in worst-case scenarios.
The strategic approach was to establish the new production line within a timeframe aligned with industry benchmarks and best practices, thereby optimising the probability of successful implementation. This entailed the qualification of established raw materials from existing suppliers and the transfer of proven process know-how from the currently qualified manufacturing site. Concurrently, efforts were focused on qualifying alternative materials and accelerating technical development, leveraging the technological capabilities inherent in Atec’s manufacturing systems. This comprehensive strategy was designed to enhance Atec’s operational independence, increase manufacturing agility, and build resilient production capacity to meet evolving customer demands proactively.
Geopolitical uncertainties
The agreement provides supply chain resilience during a time of geopolitical and trade tension. Trade tension and tariff escalation over the last ten months has threatened the supply of essential parts and materials. In response to US restrictions on the import of sophisticated semiconductors, China banned the export of several critical raw materials vital to industries including semiconductor and EV manufacturing.
Panjit said the agreement with Atec ensures a reliable flow of advanced semiconductors critical for automotive applications in the face of this global supply chain disruption.
“The manufacturing line is strategically established outside the geopolitical hotspot to minimise exposure to regional disruption, ensuring uninterrupted operations and supply stability,” said Vizcarra.
According to the company, as geopolitical tensions escalate it is seeing an increasing demand from end-users outside greater China. Panjit said its supplier strategy is not only focused on south-east Asia but developing services for customers in any region “where costs are favourable to end users”.
Panjit recognises that the growing demand for semiconductors and the increase in their value is why the US under Donald Trump has made control of semiconductor technology a core objective, beyond simply raising tariffs. “It is clear that control over semiconductors is seen as a key geopolitical asset for the future,” said the company.
Global market dynamics
The agreement enhances supply chain resilience during a period of global market fluctuations. Recent trade developments and tariff changes over the past ten months have challenged the supply of essential parts and materials. In response to restrictions on the import and export of advanced semiconductors and raw materials, the company has taken steps to mitigate potential disruptions.
Panjit stated that the agreement with Atec ensures a reliable flow of advanced semiconductors critical for automotive applications amid these global supply constraints.
“The manufacturing line is strategically established in locations chosen to reduce vulnerability to regional disruptions, thereby helping to ensure uninterrupted operations and supply stability,” said Vizcarra.
The company notes that as global supply chains evolve, it is experiencing increasing demand from end-users outside its traditional markets. Panjit emphasised that its supplier strategy focuses on developing services for customers worldwide, wherever costs are favourable.
Additionally, the rising demand and value of semiconductors highlight their strategic importance. “Control over semiconductor technology is seen as a key asset for future industry stability and security,” the company concluded.
