SFA SEMICON Philippines Corp. (SSP) reported on Monday that its net income after tax increased by 133% to $12.8 million last year from $5.5 million in 2020, driven by increased production.

“SSP staged a breakthrough recovery in financial and operating results which validates its SFA group-based marketing strategy and takes advantage of its superior manufacturing efficiencies,” SSP Chairman and Chief Executive Joon Sang Kang said in a statement.

Meanwhile, full-year gross revenues rose 8% to $347.02 million from $322.66 million due to the rise in overall production output and orders and the increased volume contribution of non-Samsung end-customers.

“The company has gained stride in diversifying its client and product portfolio in 2021. SSP’s total production output breached the 1 billion mark on the back of incremental volume contribution from new customers,” Mr. Kang added.

Total production increased 9% to 1,082 million units from 994 million units.

Under contract with its parent company SFA Semicon Co. Ltd. of Korea, SSP expanded its production contract with Wireless Power Amplifiers Corporation for the assembly of non-memory power amplifier modules in Land Grid Array packages.

Total production of the modules amounted to nearly 90 million, which accounted for a share of 8% of the company’s total output.

Meanwhile, SSP’s output of multimedia flash cards were up 38% to 22 million from the 16 million units posted the previous year.

Production of dynamic random-access memory (DRAM) modules in various formats, which account for 82% of the total output, rose by 2% to 884 million last year from 863 million in 2020.

Ramos Technology of Korea, one of the company’s new customers, had production orders amounting to nearly 6 million units, which increased the company’s card output last year.

However, orders for component chips were down 22% to 86 million units in 2021 from the 110 million chips assembled and tested in 2020. This accounted for 8% of the 1,082 million units produced during the year.

“The global semiconductor industry is expected to continue its growth trajectory at a moderate pace of about 8% in 2022 in line with the growing memory requirements of data centers and the sustained demand for computing and automotive electronics,” SSP said.

“The company remains optimistic that SSP’s financial and operating performance will continue in line with its integrated global marketing strategy under its parent corporation,” the company added.

SSP is a global outsourced semiconductor assembly and test company whose facilities are located in the Philippines.

At the stock exchange on Monday, SSP shares rose by seven centavos or 6.67% to close at P1.12 apiece. — Luisa Maria Jacinta C. Jocson