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STATS ChipPAC Expands Manufacturing Floor in Malaysia
Additional 20,000 Square Feet Increases Production and Test Capacity by 40%
| Source: STATS ChipPAC
UNITED STATES--(Marketwire - December 12, 2007) - SINGAPORE - 12/13/2007 -- STATS ChipPAC Ltd.
("STATS ChipPAC" or the "Company") (NASDAQ : STTS ) (SGX-ST: STATSChP), a
leading independent semiconductor test and advanced packaging service
provider, today announced it has expanded the production floor in its Ulu
Klang Free Trade Zone plant in Kuala Lumpur, Malaysia. The Company has
converted approximately 20,000 square feet of office space into additional
production floor space, increasing the total manufacturing floor space to
230,000 square feet. The overall size of the STATS ChipPAC Malaysia
facility is 488,000 square feet.
STATS ChipPAC Malaysia offers high volume, low cost turnkey solutions
including assembly, test and distribution. The Malaysia facility is the
primary site for STATS ChipPAC's Quad Flat No-Lead (QFN) manufacturing. In
addition to the floor space expansion, STATS ChipPAC Malaysia has been
rapidly building its QFN capacity, investing approximately $140 million
since 2004, with an additional $25 million planned in 2008 to expand its
QFN packaging and Radio Frequency (RF) test capabilities.
"We are pleased with the growth taking place at our Malaysia facility.
Production capacity has increased approximately 40% over the past 12
months, with plans for continued growth in the future," said Lew Hon Sang,
Managing Director and President, STATS ChipPAC Malaysia.
This expansion complements STATS ChipPAC's strategy to build its portfolio
of advanced technology offerings by focusing on areas with long term growth
such as QFN packaging and RF test. Revenue at the Malaysia factory has
increased approximately 24% from 2005 to 2007 as a result of its expanded
QFN manufacturing and RF test operations.
"STATS ChipPAC Malaysia is well positioned in the next two to three years
to support customer demand in the computing, communications and consumer
end markets, and is our 'Centre of Excellence' for QFN," said Tan Lay Koon,
President and Chief Executive Officer, STATS ChipPAC.
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 QFN packaging and RF test capabilities in
Malaysia, 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.