July 26, 2005 09:49 ET

STATS ChipPAC Rapidly Expanding Capacity and Technology Portfolio in China

Construction Starting in Q3 on Second Shanghai Facility to Support Advanced Turnkey Solutions

SINGAPORE and UNITED STATES -- (MARKET WIRE) -- July 26, 2005 -- STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (NASDAQ: STTS) and (SGX: STATSChP), a leading independent semiconductor test and advanced packaging service provider, today announced it is rapidly expanding both its manufacturing capacity in China and the depth of its technology portfolio for advanced laminate packages and System-in-Package (SiP) solutions. The new facility will almost double the current manufacturing floor space, further strengthening STATS ChipPAC's position as the largest full turnkey assembly and test service provider in China.

A new 300,000 square foot facility will be built next to STATS ChipPAC's existing 430,000 square foot facility in the Qingpu District of Shanghai. The building construction is scheduled to begin in the third quarter of this year and will be facilitized according to customer demand with a targeted completion of the factory in mid 2006.

STATS ChipPAC Shanghai offers high volume, low cost turnkey solutions including wafer probe, assembly, test, and distribution. In addition to the planned floor space expansion, STATS ChipPAC has been rapidly building its technology base in China with advanced die attach and wire bond processes, advanced mold processes, film die attach, and 300mm wafer thinning down to 4 mils. With high volume production experience in three dimensional (3D) stacking and System-in-Package (SiP), STATS ChipPAC Shanghai is one of the most advanced integrated circuit (IC) subcontractors in China.

"STATS ChipPAC Shanghai offers significant value to our customers in terms of its volume manufacturing experience and quick turn assembly builds, strong technology, mature business process, ample space for growth, and proximity to growing mobile handset markets," said Wan Choong Hoe, STATS ChipPAC's Chief Operating Officer. "We view China as a strategic location to provide customers with high volume laminate products from design to distribution, evolutionary stacked die solutions, and advanced SiP technology."

Beginning in the first quarter of 2005, STATS ChipPAC Shanghai has ramped a variety of high volume laminate products to support multiple customers in markets such as chipsets, PC computing, consumer, and broadband applications. Research and development resources have been added to provide customers with full product development support for next generation emerging products as well as standard packaging programs.

Over the last year, STATS ChipPAC Shanghai has also added several surface mount technology (SMT) lines and package assembly and test equipment to support the volume production of SiP solutions such as memory flash cards, DC to DC converters and baseband modules. SiP is a fully integrated system or sub-system which contains one or more ICs on a die interconnect substrate plus passive components and other subsystem components traditionally assembled on the system board. SiP addresses the growing demand for feature-rich cell phones, pocket PCs, digital cameras and other handheld consumer products which require maximum functional integration in the smallest footprint, lowest profile, and lowest cost package available. STATS ChipPAC expects to add several more SMT lines by the end of 2005 to support customer demand.

"As we have expanded our technology portfolio and successfully ramped our production volumes in PBGA, stacked die, and SiP, customers are seeing more opportunities to be successful in China," said Ng Chong Meng, Managing Director, STATS ChipPAC Shanghai. "From research and development to design, assembly, and test, we have added the resources, equipment, and advanced processes necessary to ensure our customers have a competitive edge in their markets."

About STATS ChipPAC Ltd.

STATS ChipPAC Ltd. ("STATS ChipPAC" or "the Company" -- NNM: STTS and SGX: 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 assembly and testing solutions that bring products to 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, power, digital consumer and computing. With advanced process technology capabilities and a global manufacturing presence spanning Singapore, South Korea, China, Malaysia 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, Florida, Colorado and North Carolina). Our offices outside the United States are located in the Netherlands, United Kingdom, China, Singapore, Japan, Taiwan, South Korea and Malaysia. STATS ChipPAC's facilities include those of its subsidiary, Winstek Semiconductor Corporation, in Hsinchu Valley, 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 Singapore and South Korea 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 National Market and The Singapore Exchange. In addition, STATS ChipPAC is also listed on the Morgan Stanley Capital International (MSCI) Index and the Straits Times Industrial Index. Further information is available at Information contained in this website does not constitute a part of this corporate release.

Contact Information

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