Cirtek Holdings Philippines Corp. will sell its entire ownership of Cirtek Electronics Corp. to India’s Sancode Semi for $20.2 million, or about P1.27 billion. The board-approved transaction transfers 100 percent of the semiconductor unit’s issued and outstanding shares. It gives Sancode control of a Philippine outsourced semiconductor assembly and testing operation while giving Cirtek cash to address its balance sheet. The deal is significant because it links a local technology manufacturer with an overseas buyer at a time when semiconductor capacity remains strategically important across Asia.
The consideration will arrive in two cash tranches. Sancode will pay $11.32 million when the transaction closes, while the remaining $8.88 million is due within one year. The shares will remain in escrow until the purchase price is fully paid. Cirtek said proceeds will partially settle outstanding bank loans and support the working capital needs of Cirtek Advanced Technologies and Solutions, its remaining operating subsidiary. The structure gives the Philippine group immediate liquidity while preserving a path for the buyer to complete the acquisition.
Sancode also plans to invest $2 million in equipment upgrades at Cirtek Electronics. The additional capital is intended to improve operational capacity and help the facility serve future demand. A separate $2.8 million employee benefit plan is designed to retain the unit’s existing workforce during the ownership transition. Those commitments matter in outsourced semiconductor assembly and testing, where equipment capability and experienced technicians influence delivery reliability. For the Philippines, the transaction could keep a specialized manufacturing operation active while adding foreign capital to its technology supply chain.
Cirtek’s remaining business, Cirtek Advanced Technologies and Solutions, provides design, engineering, manufacturing, testing, tuning and supply-chain services for radio-frequency, microwave and millimeter-wave equipment. Management said the sale will let the company reduce debt, improve liquidity and concentrate resources on that core subsidiary. The outcome still depends on closing the transaction and completing its payment terms. Until then, the announcement should be read as a strategic divestment and investment plan, not as evidence that new semiconductor capacity is already operational. The distinction matters for investors.
