UNITED STATES--(Marketwire - June 10, 2007) - SINGAPORE -- 6/11/2007 -- STATS ChipPAC Ltd.
("STATS ChipPAC" or the "Company") (NASDAQ: STTS) and (SGX-ST: STATSChP), a
leading independent semiconductor test and advanced packaging service
provider, and Ningbo Mingxin Microelectronics Co. Ltd. today announced the
signing of a definitive agreement for the sale of select manufacturing
assets to Mingxin. Under the agreement, STATS ChipPAC will transfer
assembly and test assets used to manufacture discrete power packages,
including TO220, D2Pak, TO247 and Dpak, to Mingxin which is located in
Ningbo city, Zhejiang province in China.
"We believe this agreement with Mingxin offers our existing customers in
discrete power packages the best solution for their long term business
needs. Mingxin's commitment and expertise in discrete power products and
competitive cost structure will provide our customers with a strong partner
for their future," said Tan Lay Koon, President and Chief Executive
Officer, STATS ChipPAC. "Transitioning out of the discrete power market
will enable STATS ChipPAC to better focus our resources on our strategic
advanced products that have better long term growth prospects. This is
another one of our initiatives to refocus our portfolio on higher growth
advanced products, following the announcement on our partnership with ANST
for low lead products on June 22, 2006."
Mingxin has been in business for over 15 years and currently focuses on
products for computer, telecommunication equipment, home application,
automotive, industrial and other consumer markets. Located in the Hi-Tech
Park of Ningbo city, Mingxin specializes in research, development and
manufacturing for a range of power, medium and small signal semiconductors.
"We are pleased to work with a global service provider like STATS ChipPAC
and believe the strong alignment between the two companies will provide
significant benefits to power customers," said Zhang Jia Lin, President,
Ningbo Mingxin Microelectronics Co. Ltd. "Mingxin has established a solid
history of success in China by focusing on high quality, high volume
manufacturing services tailored specifically for the power market."
To ensure a smooth, successful transition for customers, STATS ChipPAC and
Mingxin have developed a comprehensive transfer plan leveraging the
combined engineering, production and quality resources of both companies.
The transfer is anticipated to be completed within the next 18 months.
STATS ChipPAC will continue to provide sales and technical support to its
power customers during the transition period.
About Ningbo Mingxin Microelectronics Co., Ltd
Ningbo Mingxin Microelectronics Co., Ltd is a joint venture enterprise and
important high and new technical enterprise of the national grade in China.
Established in 1992, Mingxin specializes in semiconductor researching,
developing and manufacturing. It has 15 dedicated automatic production
lines with stable and reliable assembly processes such as TO-251 (IPAK),
TO-251-5L, TO-252 (DPAK), TO-252-5L, TO-220, TO-262, TO-263 (D2PAK),
TO-126, SOT-82, TO-92, TO-92SP, SOT-54, SOT-23, SOT-223 & TO-247, etc. It
can also perform wafer grinding and metallization of up to 6" wafers. Our
major products are all kinds of power, medium and small signal
semiconductors including Bi-polar transistors, MOSFET, JFET, Thyristor,
BSIT and power IC, etc. Its products are widely applied for computer,
telecommunication equipment, home application, motor driver, energy saving
light, instruments and meters, controller, DC motor driver, microphone,
sound system, electrical control toy and other consumer appliances, etc.
About STATS ChipPAC Ltd.
STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (NASDAQ: STTS) and
(SGX-ST: STATSChP) is a leading service provider of semiconductor packaging
design, assembly, test and distribution solutions. A trusted partner and
supplier to leading semiconductor companies worldwide, STATS ChipPAC
provides fully integrated, multi-site, end-to-end packaging and testing
solutions that bring products to the market faster. Our customers are some
of the largest wafer foundries, integrated device manufacturers (IDMs) and
fabless companies in the United States, Europe and Asia. STATS ChipPAC is a
leader in mixed signal testing and advanced packaging technology for
semiconductors used in diverse end market applications including
communications, power, digital consumer and computing. With advanced
process technology capabilities and a global manufacturing presence
spanning Singapore, South Korea, China, Malaysia and Taiwan, STATS ChipPAC
has a reputation for providing dependable, high quality test and packaging
solutions. The Company's customer support offices are centered in the
United States (California's Silicon Valley, Arizona, Texas, Massachusetts,
Colorado and North Carolina). Our offices outside the United States are
located in South Korea, Singapore, China, Malaysia, Taiwan, Japan, the
Netherlands and United Kingdom. STATS ChipPAC's facilities include those
of its subsidiary, Winstek Semiconductor Corporation, in Hsinchu District,
Taiwan. These facilities offer new product introduction support,
pre-production wafer sort, final test, packaging and other high volume
preparatory services. Together with our research and development centers in
South Korea, Singapore, Malaysia, China, Taiwan and the United States as
well as test facilities in the United States, this forms a global network
providing dedicated test engineering development and product engineering
support for customers from design to volume production. STATS ChipPAC is
listed on both the Nasdaq Stock Market (NASDAQ) and the Singapore Exchange
Securities Trading Limited (SGX-ST). In addition, STATS ChipPAC is also
included in the Morgan Stanley Capital International (MSCI) Index. Further
information is available at www.statschippac.com. Information contained in
this website does not constitute a part of this release.
Certain statements in this release, including statements regarding expected
future financial results and industry growth, are forward-looking
statements that involve a number of risks and uncertainties that could
cause actual events or results to differ materially from those described in
this release. Factors that could cause actual results to differ from our
expectations include, but are not limited to, general business and economic
conditions and the state of the semiconductor industry; level of
competition; demand for end-use applications products such as
communications equipment and personal computers; decisions by customers to
discontinue outsourcing of test and packaging services; reliance on a small
group of principal customers; continued success in technological
innovations; availability of financing; pricing pressures including
declines in average selling prices; ability to meet specific conditions
imposed for the continued trading or listing of the Company's securities on
the SGX-ST and the NASDAQ; our substantial level of indebtedness; potential
impairment charges; adverse tax and other financial consequences if the
South Korean taxing authorities do not agree with our interpretation of the
applicable tax laws; ability to develop and protect our intellectual
property; rescheduling or canceling of customer orders; changes in products
mix; intellectual property rights disputes and litigation; capacity
utilization; delays in acquiring or installing new equipment; limitations
imposed by our financing arrangements which may limit our ability to
maintain and grow our business; changes in customer order patterns;
shortages in supply of key components; disruption of our operations; loss
of key management or other personnel; defects or malfunctions in our
testing equipment or packages; changes in environmental laws and
regulations; exchange rate fluctuations; regulatory approvals for further
investments in our subsidiaries; significant ownership by Temasek Holdings
that may result in conflicting interests with Temasek Holdings and our
affiliates; unsuccessful acquisitions and investments in other companies
and businesses; our ability to continue to successfully integrate the
operations of the former separate STATS and ChipPAC companies and their
employees; labor union problems in South Korea; uncertainties of conducting
business in China; natural calamities and disasters, including outbreaks of
epidemics and communicable diseases; and other risks described from time to
time in the Company's SEC filings, including its annual report on Form 20-F
dated March 12, 2007. We undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Contact Information: Singapore Contact:
Tham Kah Locke
Vice President, Corporate Finance
Tel: (65) 6824 7788
Fax: (65) 6720 7826
email:
US Contacts:
Lisa Lavin
Marcom Manager
Tel: (208) 939 3104
Fax: (208) 939 4817
email:
The Ruth Group
David Pasquale
Executive Vice President
Tel: (646) 536 7006
email: