STATS ChipPAC offloading more lines to China

June 11, 2007 – STATS ChipPAC Ltd. says it will sell certain assembly and test assets for its discrete power packages to China’s Ningbo Mingxin Microelectronics Co. Ltd., following a similar transaction a year ago to farm out some work to mainland China in order to pursue better growth opportunities in areas such as system-in-package, flip-chip, and 3D technologies.

Under the deal, Mingxin, located in Ningbo city, Zhejiang province, will take on assembly and test assets used to manufacture discrete power packages including the TO220, D2Pak, TO247 and Dpak. Transfer of engineering, production, and quality resources is expected to be completed by the end of 2008.

“Transitioning out of the discrete power market will enable STATS ChipPAC to better focus our resources on our strategic advanced products that have better long term growth prospects,” said Tan Lay Koon, President/CEO of STATS ChipPAC, in a statement, adding that handing the lines to Mingxin “offers our existing customers in discrete power packages the best solution for their long term business needs.

“We are pleased to work with a global service provider like STATS ChipPAC and believe the strong alignment between the two companies will provide significant benefits to power customers,” added Mingxin president Zhang Jia Lin.

Mingxin’s Web site claims annual capacity of 1.6 billion discrete pieces and eventual planned capacity of 6 billion pieces/year, with 48,000 sq. m. of total facility housing 15 production lines for various power, medium and small signal semiconductors, including an assembly factory and semiconductor engineering technical center.

A year ago STATS ChipPAC agreed to set up a JV in Wuxi, China, with China Resources Logic Ltd. to provide assembly and test service for STATS’ lower-end leadframe package families, allowing the firm to focus on more leading-edge products such as system-in-package, flip-chip, and 3D technologies. That deal aimed to essentially farm out work for several of STATS ChipPAC’s lower-end leadframe package families, including small outline integrated circuit (SOIC), plastic leaded chip carrier (PLCC), plastic dual in-line package (PDIP), mini small-outline package (MSOP), small shrink outline package (SSOP), and thin-shrink small outline package (TSSOP).

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