SOURCE: STATS ChipPAC

June 10, 2007 17:00 ET

STATS ChipPAC Announces Strategic Agreement With Ningbo Mingxin Microelectronics Co. Ltd.

UNITED STATES--(Marketwire - June 10, 2007) - SINGAPORE -- 6/11/2007 -- STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (NASDAQ: STTS) and (SGX-ST: STATSChP), a leading independent semiconductor test and advanced packaging service provider, and Ningbo Mingxin Microelectronics Co. Ltd. today announced the signing of a definitive agreement for the sale of select manufacturing assets to Mingxin. Under the agreement, STATS ChipPAC will transfer assembly and test assets used to manufacture discrete power packages, including TO220, D2Pak, TO247 and Dpak, to Mingxin which is located in Ningbo city, Zhejiang province in China.

"We believe this agreement with Mingxin offers our existing customers in discrete power packages the best solution for their long term business needs. Mingxin's commitment and expertise in discrete power products and competitive cost structure will provide our customers with a strong partner for their future," said Tan Lay Koon, President and Chief Executive Officer, STATS ChipPAC. "Transitioning out of the discrete power market will enable STATS ChipPAC to better focus our resources on our strategic advanced products that have better long term growth prospects. This is another one of our initiatives to refocus our portfolio on higher growth advanced products, following the announcement on our partnership with ANST for low lead products on June 22, 2006."

Mingxin has been in business for over 15 years and currently focuses on products for computer, telecommunication equipment, home application, automotive, industrial and other consumer markets. Located in the Hi-Tech Park of Ningbo city, Mingxin specializes in research, development and manufacturing for a range of power, medium and small signal semiconductors.

"We are pleased to work with a global service provider like STATS ChipPAC and believe the strong alignment between the two companies will provide significant benefits to power customers," said Zhang Jia Lin, President, Ningbo Mingxin Microelectronics Co. Ltd. "Mingxin has established a solid history of success in China by focusing on high quality, high volume manufacturing services tailored specifically for the power market."

To ensure a smooth, successful transition for customers, STATS ChipPAC and Mingxin have developed a comprehensive transfer plan leveraging the combined engineering, production and quality resources of both companies. The transfer is anticipated to be completed within the next 18 months. STATS ChipPAC will continue to provide sales and technical support to its power customers during the transition period.

About Ningbo Mingxin Microelectronics Co., Ltd

Ningbo Mingxin Microelectronics Co., Ltd is a joint venture enterprise and important high and new technical enterprise of the national grade in China. Established in 1992, Mingxin specializes in semiconductor researching, developing and manufacturing. It has 15 dedicated automatic production lines with stable and reliable assembly processes such as TO-251 (IPAK), TO-251-5L, TO-252 (DPAK), TO-252-5L, TO-220, TO-262, TO-263 (D2PAK), TO-126, SOT-82, TO-92, TO-92SP, SOT-54, SOT-23, SOT-223 & TO-247, etc. It can also perform wafer grinding and metallization of up to 6" wafers. Our major products are all kinds of power, medium and small signal semiconductors including Bi-polar transistors, MOSFET, JFET, Thyristor, BSIT and power IC, etc. Its products are widely applied for computer, telecommunication equipment, home application, motor driver, energy saving light, instruments and meters, controller, DC motor driver, microphone, sound system, electrical control toy and other consumer appliances, etc.

About STATS ChipPAC Ltd.

STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (NASDAQ: STTS) and (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, 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, Colorado and North Carolina). Our offices outside the United States are located in South Korea, Singapore, China, Malaysia, Taiwan, Japan, the Netherlands and United Kingdom. STATS ChipPAC's facilities include those of its subsidiary, 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

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

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

    The Ruth Group
    David Pasquale
    Executive Vice President
    Tel: (646) 536 7006
    email: Email Contact