STATS ChipPAC Expands Capacity for Wafer Level Packaging
Focused Investment Supports Long-Term Growth Strategy for Mobile Applications
SINGAPORE--06/17/2009, UNITED STATES--(Marketwire - June 16, 2009) - STATS ChipPAC Ltd.
("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP), a leading
semiconductor test and advanced packaging service provider, today announced
that it is expanding capacity for full turnkey wafer level packaging in its
Singapore operation.
Wafer level packages remain one of the highest growth semiconductor
packages due to increasing demand in mobile applications requiring the
smallest, lightest devices that are able to deliver high performance and
reliability. As one of the most compact packaging methods available, wafer
level packages differ from laminate and leadframe based packages in that
all of the process steps are performed at the wafer level prior to the
singulation of the die from the wafer. Full turnkey wafer level packaging
includes wafer bump, test and die level services such as tape and reel.
STATS ChipPAC has been on a steady production ramp with wafer level
packaging services and more than doubled its production volume in 2008. The
Company intends to continue to expand its Singapore wafer level operation
and is on track to achieve another 50% increase in wafer level capacity by
the third quarter of 2009. Singapore has proven to be an excellent
logistics choice to support growth in wafer level packaging for a number of
reasons including its strategic location and close proximity to other
countries within Asia, an experienced workforce and an efficient import and
export process.
"Despite the slowdown in the global economy, there continues to be customer
demand for high performance packages with the smallest possible form
factor. For semiconductor companies interested in converting conventional
packages to wafer level packaging solutions to achieve increased
functionality and higher input/output performance at a lower cost, the
available manufacturing capacity in the market has been limited," said Wan
Choong Hoe, Executive Vice President and Chief Operating Officer, STATS
ChipPAC. "We are making a focused investment to strategically expand our
wafer level capacity to service the growing demand from our customers."
STATS ChipPAC's wafer level packaging solutions include a wide range of
technologies for wafer repassivation, redistribution and IPD layers
combined with electronics industry preferred lead free SAC alloys in both
fine and large pitch applications. Additionally, a complete turnkey process
flow is available with flexible backend assembly capability supporting high
volume wafer sort, automatic optical inspection and backend processing of
bare die into tape and reel or waffle pack.
Forward-Looking Statements
Certain statements in this release 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 include, but are not
limited to, our ability to continue to expand our wafer level operations in
Singapore, extent of deterioration in general business and economic
conditions and the state of the semiconductor industry; prevailing market
conditions; demand for end-use applications products such as communications
equipment, consumer and multi-applications and personal computers;
decisions by customers to discontinue outsourcing of test and packaging
services; level of competition; our reliance on a small group of principal
customers; our continued success in technological innovations; customer
credit risks; possible future application of push-down accounting; pricing
pressures, including declines in average selling prices; intellectual
property rights disputes and litigation; our ability to control operating
expenses; our substantial level of indebtedness and access to credit
markets; our ability to generate cash; potential impairment charges;
availability of financing; adverse tax and other financial consequences if
the South Korean taxing authorities do not agree with our interpretation of
the applicable tax laws; classification of the Company as a passive foreign
investment company; our ability to develop and protect our intellectual
property; rescheduling or canceling of customer orders; changes in our
product mix; our 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; returns from research
and development investments; 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; our
ability to meet the applicable requirements for the termination of
registration under the Exchange Act; our ability to meet specific
conditions imposed for the continued listing or delisting of our ordinary
shares on the Singapore Exchange Securities Trading Limited (SGX-ST);
exchange rate fluctuations; regulatory approvals for further investments in
our subsidiaries; majority ownership by Temasek Holdings (Private) Limited
("Temasek") that may result in conflicting interests with Temasek and our
affiliates; unsuccessful acquisitions and investments in other companies
and businesses; labor union problems in South Korea; uncertainties of
conducting business in China and changes in laws, currency policy and
political instability in other countries in Asia; natural calamities and
disasters, including outbreaks of epidemics and communicable diseases; and
other risks described from time to time in the Company's filings with the
U.S. Securities and Exchange Commission, including its annual report on
Form 20-F dated March 9, 2009. You should not unduly rely on such
statements. We do not intend, and do not assume any obligation, to update
any forward-looking statements to reflect subsequent events or
circumstances.
About STATS ChipPAC Ltd.
STATS ChipPAC Ltd. 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 the SGX-ST. Further information is
available at www.statschippac.com. Information contained in this website
does not constitute a part of this release.
Contact Information: Investor Relations Contact:
Tham Kah Locke
Vice President of Corporate Finance
Tel: (65) 6824 7788, Fax: (65) 6720 7826
email:
Media Contact:
Lisa Lavin
Deputy Director of Corporate Communications
Tel: (208) 867 9859
email: