August 25, 2022

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SFA Semicon told to settle P1.5-M fine in case vs OMB

SFA Semicon Philippines Corp. disclosed on Thursday that it was told to settle an administrative fine of P1.5 million following the receipt of a resolution from the Optical Media Board (OMB).

Under the case of OMB versus SFA Semicon or Administrative Case No. 2021-04-0177, the company was tried for alleged noncompliance with its licensing requirements under Republic Act (RA) No. 9239 or the Optical Media Act of 2003.

On June 17, 2021, SFA Semicon submitted a position paper ad cautelam stating that its blank memory chips, memory modules, and memory cards are neither optical media nor magnetic media devices.

According to RA 9239, optical media refers to devices containing sounds, images, and/or software code that has been stored, either by mastering or replication that may be accessed and read using a lens scanning mechanism employing a high-intensity light source.

A magnetic media device refers to a storage device characterized by a base, coated with ferric oxide powder, in which visual information or software code may be stored including but not limited to magnetic tapes, cassettes, video tapes, diskettes, and floppy discs.

SFA Semicon further said that since its blank memory chips, modules, and cards are neither of the two stated media, it is not regulated under RA 9239.

The OMB resolution, which was received by SFA Semicon on Tuesday, states that the company has 30 days upon receipt to settle the P1.5-million administrative fine. It also sets a 15-day period to complete registration and licensing requirements with the OMB.

“SSP will take the necessary or appropriate actions related to this resolution,” the company said in its disclosure on Thursday.

On the stock market, SFA Semicon shares climbed by 2.74% or P0.04 to P1.50 apiece. — Justine Irish D. Tabile