Shin-Etsu Chemical Co., Ltd., a major Japanese materials and electronics company, are exploring possible expansion of its Philippine manufacturing operation amid the increasing global adoption of electric vehicles (EVs).
Tereso O. Panga, director general of the Philippine Economic Zone Authority (PEZA), met with Shin-Etsu officials in Japan led by Hideyuki Sakashita, Director of the Magnetic Materials Division, and Mr. Naomichi Yoshimura, General Manager of the Magnetic Materials Division. The meeting was co-organized in partnership with Aboitiz Economic Estates, represented by Mr. Kazuaki Shirozono, as part of its investment mission in Japan from April 27-May 1 this year.
Shin-Etsu Chemical, established in 1926, is now marking its centennial milestone. In the Philippines, Shin-Etsu Magnetics focuses on 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, electric vehicles, and hybrid vehicles.
Specifically, Shin-Etsu is a major manufacturer of high-performance rare earth magnets (neodymium, samarium, and cerium) essential for EV motor. Shin-Etsu Magnetics maintains its biggest operations in the Philippines, employing more than 4,300 workers.
Japanese firms
The PEZA delegation also met with other Japanese firms as part of its strategy to engage its investors, Japan especially, to strengthen the investment pipeline.
In partnership with TMI Associates, considered one of Japan’s top five law firms, and PEZA’s Institutional Investment Promotion Partner Fair Consulting Group, Panga met with E-SUPPORTLINK Ltd., a Japanese company engaged in the development and deployment of AI and drone-based agricultural technologies for real-time crop monitoring, disease detection, and productivity analysis in banana plantations.
E-SUPPORTLINK has 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 technology. The project aims to assist banana plantation owners in the early detection of diseases, which currently relies heavily on manual human intervention and is prone to delayed reporting.
The company plans to cater to PEZA-registered Japanese agro-industrial locators and banana plantations in Davao City, while also exploring the establishment of its AI processing operations in the Philippines as an IT-BPM locator. Beyond banana plantations, E-SUPPORTLINK is looking to expand its services to other high-value crops such as coconut, cacao, and pineapple.
The PEZA delegation also engaged a major Japanese construction and real estate development group that is currently studying expansion opportunities in the Philippines. The company is engaged in design, consultancy, construction, renovation, and real estate development for residential, commercial, industrial, logistics, healthcare, hospitality, and infrastructure projects, with more than 5,000 completed projects. It is considering the registration of its CAD operations with PEZA, citing the Philippines’ strong growth potential compared with other ASEAN markets.
Another prospective investor engaged by PEZA is a Japanese manufacturer of health monitoring and precision measuring devices. The company produces body composition analyzers, weighing scales, health meters, blood pressure monitors, pedometers, kitchen scales, thermometers, and other wellness-related electronic instruments for household, medical, and commercial use. It is currently evaluating potential ASEAN sites for the establishment of its third factory and is studying the possible transfer of a portion of its existing operations from another country to a new manufacturing site.
The PEZA team also met with the law firm Uryu & Itoga, represented by Atty. Fukutaro Senga and Atty. Ricky Abornay. Uryu & Itoga is a specialized international law firm with a strong mid-market corporate practice and recognized credibility in international corporate law. PEZA and Uryu & Itoga discussed possible collaboration on an investment forum for the firm’s clients and network.
PEZA likewise met with SIIX Corporation, represented by Mr. Shinichi Yamane, General Manager of the Osaka Sales Department, who shared recent development trends being observed by the company. In the Philippines, SIIX is engaged in the manufacture and sub-assembly of printed circuit boards, flexible printed circuits, instant cameras, industrial plastic products, molds and dies, telecommunications and electronic components, automotive parts, and general-purpose plastic products, including related mold repair, maintenance, and texturing services. The company currently employs more than 1,000 workers in the country.
As a culminating highlight of the Japan visit, DG General Panga also served as Guest of Honor and delivered remarks during the 50th anniversary celebration of Kanepackage Japan, joining key Japanese government and business leaders including Saitama Prefecture Governor Motohiro Ōno, Iruma City Mayor Riichiro Sugishima, Kanepackage Chairman Sakutaro Kanehira, Kanepackage President Yoshikazu Kanesaka, Mr. Ryota Kanehira, Representative Director, and Mr. Keita Yamashiro, President of EPE Corporation.
Kanepackage has been registered with PEZA since 1996 and currently employs over 700 workers across its three sites in Batangas, namely LISP III, FPIP, and Lima Technology Center. This reflects nearly three decades of continued partnership with PEZA and sustained confidence in the Philippines as a competitive manufacturing and export base.
“These engagements show that Japanese companies continue to view the Philippines not only as a manufacturing base, but also as a partner for innovation, resilience, and regional growth. PEZA will continue to provide the red-carpet treatment to investors who bring in capital, technology, exports, and quality jobs for Filipinos,” DG Panga said.
