SOURCE: STATS ChipPAC

STATS ChipPAC

May 28, 2013 05:15 ET

STATS ChipPAC Expands in Singapore With Grand Opening of New Building

Supports Growth of Next Generation Technologies in Post Wafer fab Process and Advanced Wafer Level Packaging for Sophisticated Mobile Devices

SINGAPORE -- 28 MAY 2013, UNITED STATES--(Marketwired - May 28, 2013) - STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (SGX-ST: STATSChP) (SGX: S24), a leading provider of advanced semiconductor packaging and test services, today celebrated the grand opening of its new building in Singapore with more than 150 distinguished guests, including Singapore Deputy Prime Minister and Coordinating Minister for National Security & Minister for Home Affairs, Mr. Teo Chee Hean, and other governmental and business representatives.

STATS ChipPAC has invested approximately US$1.7 billion (S$2.1 billion) in Singapore to date to expand its technology offerings and manufacturing capacity. Singapore has become the Company's global hub for advanced wafer level technology research and development (R&D) and wafer level packaging centre of excellence for advanced mobile devices. Based on the increasing market demand for these devices, STATS ChipPAC expects to accelerate its investments in Singapore by a further US$500 million (S$620 million) over the next three years.

"Our mobile communications business worldwide has experienced strong, double-digit growth over the past three years and contributed US$1.0 billion (S$1.2 billion) to STATS ChipPAC's revenue in 2012. Mobile technology convergence is pushing the boundaries for smaller form factor, higher performance, increased functionality and lower cost semiconductors. In 2012, more than 60% of the 2.5 billion chips we manufactured in Singapore went into mobile handsets, smartphones and tablets," said Tan Lay Koon, President and Chief Executive Officer, STATS ChipPAC.

STATS ChipPAC's state-of-the-art facility, at 808,000 square feet, is the largest Outsourced Semiconductor Assembly and Test (OSAT) operation in Singapore. STATS ChipPAC Singapore (SCS) has led the semiconductor industry in a number of breakthrough manufacturing and technology achievements over the last three years with a fan-out wafer level package known as embedded Wafer Level Ball Grid Array (eWLB). The recently expanded operation will support STATS ChipPAC's rapidly growing wafer level business for advanced mobile devices and will enable the Company to focus on the further development of its Post Wafer fab Process (PWfP) business.

Mr. Tan continued, "We were among the first companies in the world to ramp eWLB to high volume production and establish it as a proven fan-out wafer level package that provides significant performance, size and cost benefits compared to other packaging technology. STATS ChipPAC has also taken a leadership role in the semiconductor industry by becoming the first company to offer a complete set of PWfP solutions. Our specialised PWfP capabilities in Singapore will play a critical role in the development of advanced wafer level technology for next generation mobile devices."

PWfP is an emerging business area between the front-end wafer foundries which create silicon wafers and the OSAT providers that handle back-end packaging and test. PWfP includes advanced wafer level processes such as wafer thinning, microbumping and redistribution that are increasingly important factors in delivering innovative semiconductor packaging solutions. With a strong focus on PWfP, STATS ChipPAC has established a leadership position in the industry with a comprehensive platform of wafer level technology solutions that include Fan-in Wafer Level Packaging (FIWLP), Fan-out Wafer Level Packaging (FOWLP), Integrated Passive Devices (IPD) and Through Silicon Via (TSV).

"Today represents an exciting step forward in the accelerated growth of our Singapore operation. The successful workforce skills expansion, productivity and research programs we have established in partnership with our local labour movement and government agencies will ensure our Company is well positioned to meet the complex and demanding requirements of leading edge mobile technology," said Wan Choong Hoe, Executive Vice President and Chief Operating Officer, STATS ChipPAC.

With the development of PWfP and the rapid growth expected in wafer level technology, STATS ChipPAC plans to expand its Singapore workforce, including its Professional, Managerial, Executive and Technical (PMET) positions, by 12% in 2013 over its current workforce of approximately 2,500 employees in Singapore. Singapore residents represent 54% of the STATS ChipPAC Singapore workforce and 84% of its PMET positions. STATS ChipPAC has approximately 10,000 employees in eight countries worldwide.

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; the amount of the business interruption insurance claim due to flooding of the Thailand Plant; 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

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