SOURCE: STATS ChipPAC

August 31, 2005 08:00 ET

STATS ChipPAC Expands Flip Chip Capacity

Capacity Increase to Support Full Turnkey Offering

SINGAPORE and UNITED STATES -- (MARKET WIRE) -- August 31, 2005 -- (Singapore Date: 31 August 2005) -- STATS ChipPAC Ltd. ("STATS ChipPAC") (NASDAQ: STTS) (SGX-ST: STATSChP), a leading independent semiconductor test and advanced packaging service provider, today announced it is expanding its flip chip assembly capacity to support growing customer demand for flip chip packages.

The increase in flip chip assembly capacity aligns with STATS ChipPAC's recently announced 300mm wafer bumping service and reinforces the Company's goal of providing a full turnkey service offering for customers. STATS ChipPAC will add assembly equipment and infrastructure specifically tailored to high-volume manufacturing of flip chip packages. As a result, the Company's flip chip capacity is currently expected to reach several million units per month by the first quarter of 2006.

"Although high end flip chip applications drive the technology curve, flip chip technology is spreading beyond more traditional applications such as high performance ASICs and graphics into products such as DSPs and integrated 3D packages for mobile platforms. This in turn is driving more demand for flip chip capacity from wafer bump to sort, assembly, and test," said Scott Jewler, Chief Strategy Officer, STATS ChipPAC. "We expect that increasing our high volume flip chip manufacturing capacity together with our wafer bumping capacity will support our goal of providing full turnkey solutions to customers."

STATS ChipPAC's flip chip portfolio ranges from large single die packages with passive components used for graphics and ASIC devices, to modules and complex three dimensional (3D) packages that contain logic, memory and radio frequency (RF) devices and that integrate flip chip and wire bonding interconnection within the same package.

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 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 Securities Trading Limited. 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 www.statschippac.com. Information contained in this website does not constitute a part of this release.

Certain statements in this press 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 press release. Factors that could cause actual results to differ include our ability to successfully integrate the operations of former STATS and ChipPAC and their employees; general business and economic conditions and the state of the semiconductor industry; demand for end-use applications products such as communications equipment and personal computers; reliance on a small group of principal customers; decisions by customers to discontinue outsourcing of test and packaging services; changes in customer order patterns; rescheduling or canceling of customer orders; changes in product mix; capacity utilization; level of competition; pricing pressures including declines in average selling prices; continued success in technological innovations; delays in acquiring or installing new equipment; shortages in supply of key components; availability of financing; exchange rate fluctuations; litigation and other risks described from time to time in the Company's SEC filings, including its annual report on Form 20-F dated March 18, 2005 and the Registration Statement on Form F-3/S-3 (File Nos. 333-119705 and 333-119705-1) of STATS ChipPAC and STATS ChipPAC, Inc., respectively. 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:
    Michael G. Potter
    Chief Financial Officer
    Tel: (65) 6824 7777
    Fax: (65) 6720 7826

    US Contacts:
    Drew Davies
    Director, Investor Relations
    Tel: (408) 586 0608
    Fax: (408) 586 0652
    email: Email Contact

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

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