SOURCE: STATS ChipPAC

STATS ChipPAC

June 16, 2009 16:00 ET

STATS ChipPAC Expands Capacity for Wafer Level Packaging

Focused Investment Supports Long-Term Growth Strategy for Mobile Applications

SINGAPORE--06/17/2009, UNITED STATES--(Marketwire - June 16, 2009) - STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP), a leading semiconductor test and advanced packaging service provider, today announced that it is expanding capacity for full turnkey wafer level packaging in its Singapore operation.

Wafer level packages remain one of the highest growth semiconductor packages due to increasing demand in mobile applications requiring the smallest, lightest devices that are able to deliver high performance and reliability. As one of the most compact packaging methods available, wafer level packages differ from laminate and leadframe based packages in that all of the process steps are performed at the wafer level prior to the singulation of the die from the wafer. Full turnkey wafer level packaging includes wafer bump, test and die level services such as tape and reel.

STATS ChipPAC has been on a steady production ramp with wafer level packaging services and more than doubled its production volume in 2008. The Company intends to continue to expand its Singapore wafer level operation and is on track to achieve another 50% increase in wafer level capacity by the third quarter of 2009. Singapore has proven to be an excellent logistics choice to support growth in wafer level packaging for a number of reasons including its strategic location and close proximity to other countries within Asia, an experienced workforce and an efficient import and export process.

"Despite the slowdown in the global economy, there continues to be customer demand for high performance packages with the smallest possible form factor. For semiconductor companies interested in converting conventional packages to wafer level packaging solutions to achieve increased functionality and higher input/output performance at a lower cost, the available manufacturing capacity in the market has been limited," said Wan Choong Hoe, Executive Vice President and Chief Operating Officer, STATS ChipPAC. "We are making a focused investment to strategically expand our wafer level capacity to service the growing demand from our customers."

STATS ChipPAC's wafer level packaging solutions include a wide range of technologies for wafer repassivation, redistribution and IPD layers combined with electronics industry preferred lead free SAC alloys in both fine and large pitch applications. Additionally, a complete turnkey process flow is available with flexible backend assembly capability supporting high volume wafer sort, automatic optical inspection and backend processing of bare die into tape and reel or waffle pack.

Forward-Looking Statements

Certain statements in this release 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 include, but are not limited to, our ability to continue to expand our wafer level operations in Singapore, extent of deterioration in 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; customer credit risks; possible future application of push-down accounting; 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; our ability to generate cash; potential impairment charges; availability of financing; adverse tax and other financial consequences if the South Korean taxing authorities do not agree with our interpretation of the applicable tax laws; classification of the Company as a passive foreign investment company; our ability to develop and protect our intellectual property; rescheduling or canceling of customer orders; changes in our product mix; our 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; returns from research and development investments; 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; our ability to meet the applicable requirements for the termination of registration under the Exchange Act; our ability to meet specific conditions imposed for the continued listing or delisting of our ordinary shares on the Singapore Exchange Securities Trading Limited (SGX-ST); 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; labor 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; and other risks described from time to time in the Company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F dated March 9, 2009. 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. 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 in 10 different countries. 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 Corporate Communications
    Tel: (208) 867 9859
    email: Email Contact