SOURCE: STATS ChipPAC

STATS ChipPAC

December 31, 2014 12:30 ET

STATS ChipPAC Announces Plan to Relocate China Manufacturing Operation

SINGAPORE--1 January 2015, UNITED STATES--(Marketwired - Dec 31, 2014) - STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP) (SGX: S24), a leading provider of advanced semiconductor packaging and test services, today announced its plan to relocate the Company's wholly-owned subsidiary, STATS ChipPAC Shanghai, Co., Ltd. ("SCC") to a new manufacturing site in China.

SCC is a 983,000 square foot packaging and test operation located at No. 188 Huaxugong Road, Xujing Town, Shanghai, People's Republic of China (PRC). Recent changes in the long term zoning, development and construction plans for the West Hongqiao area of China have resulted in the need to relocate SCC by the end of 2017. STATS ChipPAC will be working with the Qingpu Land Planning Bureau, the Qingpu District Land Reserve Center and the Shanghai Qingpu District Xujing Town House and Land Expropriation Compensation Office to transfer the land currently occupied by SCC to the relevant PRC local authorities and identifying a new location for the manufacturing operation.

"As we work with the local PRC authorities to develop a timeline to relocate SCC, our top priority will be to minimize any potential disruptions for our customers and employees. The relocation of SCC to a new site is expected to take place in late 2017," said Tan Lay Koon, President and Chief Executive Officer, STATS ChipPAC. "Our goal is to select a new location that will be in close proximity to our current site. Once a new site has been identified, we will prepare a carefully phased transition plan with each of our customers to ensure a successful move."

Established in 1994, SCC provides high volume, low cost turnkey solutions encompassing wafer bump, wafer probe, packaging, final test and distribution services. SCC offers a broad portfolio of leaded, laminate, stacked die, memory card and flip chip packages to support multiple customers in the communications, consumer and computing markets.

Forward-Looking Statements
Certain statements in this release are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, 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; 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; potential impairment charges; availability of financing; changes in our product mix; our capacity utilisation; 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; customer credit risks; disruption of our operations; shortages in supply of key components and disruption in supply chain; inability to consolidate our Malaysia operations into our China operations and uncertainty as to whether such plan will achieve the expected objectives and results; loss of key management or other personnel; defects or malfunctions in our testing equipment or packages; rescheduling or cancelling of customer orders; adverse tax and other financial consequences if the taxing authorities do not agree with our interpretation of the applicable tax laws; classification of our Company as a passive foreign investment company; our ability to develop and protect our intellectual property; changes in environmental laws and regulations; 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; labour 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; the continued trading and listing of our ordinary shares on the Singapore Exchange Securities Trading Limited ("SGX-ST"). 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. (SGX-ST Code: S24) 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 throughout Asia, the United States and Europe. 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: Email Contact

    Media Contact:
    Lisa Lavin
    Deputy Director of Marketing Communications
    Tel: (208) 867-9859
    email: Email Contact