Japan electronics company planning PHL expansion to supply EV industry

THE Philippine Economic Zone Authority (PEZA) said a major Japanese electronics firm is looking to expand its operations in the Philippines in order to be better-positioned to supply the electric vehicle (EV)  industry.

In a statement on Saturday, PEZA said Shin-Etsu Chemical Co., Ltd. is looking at growing its footprint from current operations involving the manufacture, assembly, magnetizing, and recycling of rare earth and general application magnets used in hard disk drives, semiconductors, optical devices, electric power steering systems, EVs, and hybrid vehicles. 

The company employs about 4,300 workers here.

The investment opportunities were discussed in PEZA’s recent meeting with Shin-Etsu officials in Japan.

PEZA also met with E-SUPPORTLINK Ltd., a Japanese company specializing in artificial intelligence (AI)- and drone-based agricultural technologies for real-time crop monitoring, disease detection, and productivity analysis in banana plantations.

The company signed a memorandum of understanding with the Department of Agriculture Regional Field Office XI, the Department of Science and Technology Regional Office XI, and three representatives of Davao-based banana producers to pilot its disease-prevention technology, PEZA said.

E-SUPPORTLINK said it plans to cater to PEZA-registered Japanese agro-industrial locators and banana plantations in Davao City. It is also looking to expand its services to other high-value crops like coconut, cacao, and pineapple.

The company is studying the possibility of expanding its AI processing operations in the Philippines, PEZA also said.

PEZA also met with major Japanese firms involved in construction and real estate, health monitoring and precision measuring devices, digital services, and high-value manufacturing for potential expansions in the Philippines.

“Japan remains one of PEZA’s most important and trusted investment partners,” PEZA Director-General Tereso O. Panga was quoted as saying.

“Through this mission, we were able to reaffirm our commitment to existing Japanese locators while also opening doors for new projects in high-value manufacturing, digital services, agri-technology, and support industries,” he said.

The agency is seeking to strengthen relations with Japanese registered business enterprises who are potentially considering expansion opportunities. — Beatriz Marie D. Cruz