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UTAC to expand Thailand operations

Posted: 08 Dec 2006     Print Version  Bookmark and Share

Keywords:wafer  semiconductor  low-end packaging  packaging  United Test and Assembly Centre Ltd 

United Test and Assembly Centre Ltd (UTAC) will pump more than Rs.4,55.20 crore ($100 million) into its Thailand operations over the next three years as it shifts more low-end packaging activities to the country.

Its investments will include a new 29,100sqm test operations and distribution centre in the Wellgrow Industrial Park outside Bangkok, near one of the two plants it now operates in Thailand, the company said in a statement. Production is expected to begin in the second half of 2007 at the facility, which will employ more than 1,000 when it opens.

Group president and CEO Lee Joon Chung said the company's Thai operations had been a "significant contributor" to revenue growth since UTAC acquired NS Electronics Bangkok in June for Rs.796.60 crore ($175 million). Lee added that UTAC will "optimise group resources" by consolidating leadframe-based assembly in Thailand while focusing on substrate-based packaging and test services in its home base in Singapore.

In a separate statement, the company said it has been selected by Legerity Inc. as a "second source" for the wafer soft and assembly of Legerity's next-generation subscriber line interface circuit and subscriber line access controller products. Initial production for Legerity will begin in Q1 of 2007, with "volume progressively increasing in the latter part of the year," UTAC said.

The deal represents "a validation of UTAC's strategy" to split test and assembly between Singapore and Thailand since Legerity's wafers will be probed in Singapore before being shipped to Thailand for assembly, group executive vice president June Chia said.

UTAC said a series of new customer wins and the contribution of its Thai operations are expected drive revenue growth of about 70 per cent this year.

- Jonathan Hopfner
EE Times

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