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STATS ChipPAC Expands Flip Chip Offering With Full Turnkey Solution in China
Flip Chip Assembly and Test Ready for Customer Qualification With Wafer Bumping Expected to Be Available in 2008
| Source: STATS ChipPAC
UNITED STATES--(Marketwire - November 19, 2007) - SINGAPORE - 11/20/2007 -- STATS ChipPAC Ltd.
("STATS ChipPAC" or the "Company") (NASDAQ : STTS ) and (SGX-ST: STATSChP), a
leading independent semiconductor test and advanced packaging service
provider, today announced that it is expanding its flip chip offering to
provide customers a complete turnkey solution in China. STATS ChipPAC's
operation in Shanghai, China will provide high volume, low cost, full
turnkey flip chip solutions encompassing wafer bump, sort, assembly and
final test.
The Company is following a two-phased approach to extend its full turnkey
flip chip offering to China. The first phase is the addition and
qualification of assembly and test equipment specifically tailored to high
volume manufacturing of flip chip packages. STATS ChipPAC Shanghai recently
completed internal qualification of flip chip assembly and test. Customer
qualification is ongoing and is expected to be completed in the fourth
quarter of 2007. Volume manufacturing is expected to begin in the first
quarter of 2008.
In the second phase, electroplated wafer bumping will be added to complete
the full turnkey service offering in China. Electroplated wafer bumping
technology is crucial to achieving superior bump quality, higher yield, and
finer bump pitches over other wafer bumping methods. Electroplated wafer
bumping on 8-inch (200mm) silicon wafers is scheduled to be added in the
first half of 2008 followed by the addition of 12-inch (300mm) wafer
bumping in the second half of 2008.
"As demand for flip chip technology continues to grow in applications such
as high performance ASICs and graphics as well as DSPs and integrated 3D
packages for mobile platforms, it will be essential to have a low cost,
high volume manufacturing location for flip chip solutions. We have
successfully ramped advanced technologies in China and believe it is an
important strategic location for customers who are looking for cost
effective flip chip technology," said Wan Choong Hoe, Executive Vice
President and Chief Operating Officer, STATS ChipPAC.
The Company's current flip chip portfolio ranges from large single die
packages with passive components used for graphics and ASIC devices, to
modules and complex three dimensional (3D) packages that contain logic,
memory and radio frequency (RF) devices and integrate flip chip and wire
bonding interconnection within the same package.
"Over the last three years, STATS ChipPAC has focused on aggressively
expanding its flip chip portfolio in terms of technology, manufacturing
capacity and geographic footprint. Our new service offering in China
complements our advanced flip chip portfolio in South Korea as well as our
bumping capabilities in Taiwan and Singapore. Flip chip technology is an
important part of our plan to grow STATS ChipPAC Shanghai into a mega site
for full turnkey backend solutions encompassing wafer bump, sort, assembly
and final test," said Wan.
About STATS ChipPAC Ltd.
STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (NASDAQ : STTS )
(SGX-ST: STATSChP) is a leading service provider of semiconductor packaging
design, assembly, test and distribution solutions in diverse end market
applications including communications, digital consumer and computing. With
global headquarters in Singapore, STATS ChipPAC has design, research and
development, manufacturing or customer support offices in 10 different
countries. 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 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
expansion plans relating to flip chip offering in China and related
customer qualifications, 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; the ability
to meet the applicable requirements for the termination of registration
under the U.S. Securities Exchange Act of 1934, as amended; ability to meet
specific conditions imposed for the continued listing or delisting of the
Company's securities on the SGX-ST; 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.