A major Chinese manufacturing firm has secured a significant investment foothold in the Philippines, with its local subsidiary committing P30 million to establish a new metal fabrication facility in Batangas.
The Philippine Economic Zone Authority (Peza) announced on Monday the approval of Optispac Philippines Inc. as an export-oriented enterprise within the Lima Technology Center Special Economic Zone. The 740-hectare zone will host the new operation, which is poised to begin production with an initial output target of 100,000 units in its inaugural year.
Peza Director General Tereso Panga emphasized the strategic importance of the investment, stating: "By producing sophisticated electronic packaging solutions right here in our ecozones, they provide essential components that allow our existing locators to innovate and compete more effectively at a global level."
The company plans a substantial production ramp-up, aiming to exceed 375,000 units annually by its fourth year of operation. Investment funds will be directed toward machinery, equipment, and essential working capital to support this growth trajectory.
With its Peza registration finalized in a March 30 signing ceremony between Panga and Optispac Vice President Munan Tan, the company now qualifies for key government incentives. These include an income tax holiday spanning four to seven years, followed by a decade-long option for a reduced 5% special corporate income tax or enhanced deductions.
Optispac specializes in advanced fabricated metal products with applications across multiple high-tech sectors, including automotive electronics, medical devices, infrared sensors, and power electronics. The firm also manufactures critical liquid-cooling components for data centers—a capability Peza highlights as vital for supporting the Philippines' semiconductor and electronics industry.
This sector remains the country's top export performer, generating $49.64 billion in shipments during 2025. The new Batangas facility's expertise in hermetic packaging and cooling technologies is expected to further strengthen this industrial backbone.
The investment adds momentum to Peza's manufacturing pipeline, which led all sectors in the first quarter with 30 of 78 approved projects totaling P45.53 billion. "By integrating advanced technologies into the local ecosystem," Peza noted in its statement, "we are building a future-ready economy that can meet the surging global demand for AI and next-generation electronics."