Under the terms of the agreement, STATS ChipPAC will acquire LSI's assembly and test operation in Thailand which consists of a facility with approximately 440,000 square feet of floor space, manufacturing equipment and certain other assets. STATS ChipPAC will offer employment contracts to LSI employees in the Thailand facility. LSI will further enter into a long-term supply agreement with STATS ChipPAC for their assembly and test services needs.
"The acquisition of LSI's Thailand facility and its world class workforce secures long term business commitment from LSI to STATS ChipPAC and reinforces our position in the data storage and communications market. It also adds scale and improves the economies of scale of our leadframe business. Over the years, we have built a strong relationship with LSI and we are pleased to expand the level of services and support we can offer them," said Tan Lay Koon, President and Chief Executive Officer of STATS ChipPAC.
"LSI's strategic agreement with STATS ChipPAC provides a tremendous amount of value to both companies. It reinforces our transition to a fabless manufacturing business model and allows us to focus our resources on designing and marketing semiconductor solutions. It also provides us with assured capacity and access to the same high quality assembly and test services that LSI requires going forward," said Andy Micallef, Executive Vice President of Operations, LSI.
The transaction is expected to close within 90 days, subject to the satisfaction of customary closing conditions and regulatory approvals.
LSI Corporation (
About STATS ChipPAC Ltd.
STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (
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.
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