The STS Semiconductor and Telecommunications Co. Ltd. facility is expected to produce up to $3.5 billion worth of electronic exports annually after construction of the plant is completed in December.

Groundbreaking at the 15-hectare site in the Clark Freeport Zone was held way back in January.

STS Semiconductor and Telecommunications is a Samsung Electronics spin-off engaged in semiconductor packaging and testing, the company’s Web site showed.

Its investment here is being carried out by a locally registered firm called Phoenix Semiconductor Philippines Corp.

“It will be investing $135 million for the initial phase to provide chips similar to what Texas Instruments [makes in the Philippines],” one official said.

Texas Instruments Philippines, for its part, expects its $1.5-billion semiconductor facility also in the free port to be fully operational by yearend, the official added.

The STS Semiconductor and Telecommunications investment, meanwhile, comprises roughly two-thirds of the free port authority’s target for 2010.

Clark Development Corp. is aiming to register as much as P10 billion worth of investments for 2010, up by 47.1% from the 2009 tally.

Locators at the free port enjoy duty-free importation and a lower 5% tax on gross income.