SOURCE: STATS ChipPAC

October 23, 2007 06:00 ET

STATS ChipPAC Celebrates Expansion in China With Grand Opening of Second Manufacturing Facility

UNITED STATES--(Marketwire - October 23, 2007) - SINGAPORE - 10/23/2007 -- 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 the grand opening of a second 371,000 square foot manufacturing facility in Shanghai, China.

The new facility almost doubles the Company's current floor space of 422,000 square feet, further strengthening STATS ChipPAC's position as the largest full turnkey assembly and test service provider in China. STATS ChipPAC Shanghai offers high volume, low cost turnkey solutions including wafer probe, assembly, final test and distribution to support multiple customers in markets such as PC chipsets, computing, consumer and broadband applications.

"China is a growing market and an important strategic location for our customers and our Company. STATS ChipPAC has differentiated itself by the depth of our technology portfolio in China, proven high volume manufacturing experience and a successful business model based on full turnkey solutions," said Wan Choong Hoe, Executive Vice President and Chief Operating Officer, STATS ChipPAC.

In addition to the recent floor space expansion, STATS ChipPAC has been rapidly building its technology portfolio in China with advanced die attach and wire bond processes, advanced mold processes, film die attach and wafer thinning. With high volume production experience in Plastic Ball Grid Array (PBGA) packages, three dimensional (3D) stacking and System-in-Package (SiP) solutions, STATS ChipPAC Shanghai is one of the most advanced integrated circuit (IC) subcontractors in China. STATS ChipPAC is also adding a turnkey flip chip solution from bump, sort and assembly to final test in China.

"Today we celebrate the significant milestones and success that STATS ChipPAC Shanghai has achieved over the past 12 years and the potential for growth we believe is ahead. From research and development to design, assembly, and test, we have the resources, equipment, and advanced processes necessary to ensure our customers have a competitive edge in their markets," said Lee Yik Choong, President and Managing Director, STATS ChipPAC Shanghai.

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. A trusted partner and supplier to leading semiconductor companies worldwide, STATS ChipPAC provides fully integrated, multi-site, end-to-end packaging and testing solutions that bring products to the market faster. Our customers are some of the largest wafer foundries, integrated device manufacturers (IDMs) and fabless companies in the United States, Europe and Asia. STATS ChipPAC is a leader in mixed signal testing and advanced packaging technology for semiconductors used in diverse end market applications including communications, digital consumer and computing. With advanced process technology capabilities and a global manufacturing presence spanning Singapore, South Korea, China, Malaysia, Thailand and Taiwan, STATS ChipPAC has a reputation for providing dependable, high quality test and packaging solutions. The Company's customer support offices are centered in the United States (California's Silicon Valley, Arizona, Texas, Massachusetts, Colorado and North Carolina). Our offices outside the United States are located in South Korea, Singapore, China, Malaysia, Thailand, Taiwan, Japan, the Netherlands and United Kingdom. STATS ChipPAC's facilities include those of its subsidiary, STATS ChipPAC Taiwan Semiconductor Corporation (formerly known as Winstek Semiconductor Corporation), in Hsinchu District, Taiwan. These facilities offer new product introduction support, pre-production wafer sort, final test, packaging and other high volume preparatory services. Together with our research and development centers in South Korea, Singapore, Malaysia, China, Taiwan and the United States as well as test facilities in the United States, this forms a global network providing dedicated test engineering development and product engineering support for customers from design to volume production. 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 also 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 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.

Contact Information

  • Investor Relations Contact:
    Tham Kah Locke
    Vice President of Corporate Finance
    Tel: (65) 6824 7788
    Fax: (65) 6720 7826
    email: Email Contact

    Media Contact:
    Lisa Lavin
    Senior Marcom Manager
    Tel: (208) 939 3104
    Fax: (208) 939 4817
    email: Email Contact