SFA SEMICON Philippines Corp. has set aside $10.25 million out of its retained earnings to partly fund its five-year investment plan approved a year ago.
The plan, which spans until 2026, aims to replace “fully depreciated” machinery and equipment in the first phase of the listed semiconductor company’s manufacturing facility, it said in a stock market disclosure on Tuesday.
Also, the five-year updated investment plan targets to upgrade and acquire new production equipment in the first and second phases of the plant in Clark Freeport Zone, it added.
The budget was approved about a year ago when the company allocated $65 million for its investment plan. This year’s funding, which is equivalent to around P564.15 million, is higher than the $10.19 million allotted for the previous year.
Additionally, SFA Semicon has declared a cash dividend of $2.56 million, with the actual amount of dividend per share to be calculated based on the company’s number of outstanding shares on March 17, 2023.
SFA Semicon Chairman and President, Dong Hwan Im said the board meeting on Feb. 17, 2023 “unanimously declared” the cash dividend out of the company’s unrestricted retained earnings as of Dec. 31, 2022, “to give the shareholders returns on their investment.”
The dividends will be paid on April 14, 2023 to stockholders on record as of March 17. The company said its total outstanding shares could still change by the record date due to its ongoing share buy-back program.
At the local bourse on Tuesday, shares in SFA Semicon retained were unchanged at P1.73 apiece. — Adrian H. Halili