STATS ChipPAC Expands Manufacturing Floor in Malaysia
December 12 2007 - 5:00PM
Marketwired
UNITED STATES (NASDAQ: STTS) (SGX-ST: STATSChP), a leading
independent semiconductor test and advanced packaging service
provider, today announced it has expanded the production floor in
its Ulu Klang Free Trade Zone plant in Kuala Lumpur, Malaysia. The
Company has converted approximately 20,000 square feet of office
space into additional production floor space, increasing the total
manufacturing floor space to 230,000 square feet. The overall size
of the STATS ChipPAC Malaysia facility is 488,000 square feet.
STATS ChipPAC Malaysia offers high volume, low cost turnkey
solutions including assembly, test and distribution. The Malaysia
facility is the primary site for STATS ChipPAC's Quad Flat No-Lead
(QFN) manufacturing. In addition to the floor space expansion,
STATS ChipPAC Malaysia has been rapidly building its QFN capacity,
investing approximately $140 million since 2004, with an additional
$25 million planned in 2008 to expand its QFN packaging and Radio
Frequency (RF) test capabilities.
"We are pleased with the growth taking place at our Malaysia
facility. Production capacity has increased approximately 40% over
the past 12 months, with plans for continued growth in the future,"
said Lew Hon Sang, Managing Director and President, STATS ChipPAC
Malaysia.
This expansion complements STATS ChipPAC's strategy to build its
portfolio of advanced technology offerings by focusing on areas
with long term growth such as QFN packaging and RF test. Revenue at
the Malaysia factory has increased approximately 24% from 2005 to
2007 as a result of its expanded QFN manufacturing and RF test
operations.
"STATS ChipPAC Malaysia is well positioned in the next two to
three years to support customer demand in the computing,
communications and consumer end markets, and is our 'Centre of
Excellence' for QFN," said Tan Lay Koon, President and Chief
Executive Officer, STATS ChipPAC.
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 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 both the Nasdaq
Stock Market (NASDAQ) and the Singapore Exchange Securities Trading
Limited (SGX-ST). In addition, STATS ChipPAC is 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 expansion plans relating to QFN packaging and RF test
capabilities in Malaysia, 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; the ability to meet the applicable requirements for the
termination of registration under the U.S. Securities Exchange Act
of 1934, as amended; ability to meet specific conditions imposed
for the continued listing or delisting of the Company's securities
on the SGX-ST; 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.
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 Senior Marcom Manager Tel:
(208) 939 3104 Fax: (208) 939 4817 email: Email Contact
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