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") (
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.
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