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Manufacturing/Packaging??

UTAC, SMIC joint fab to break-even next year

Posted: 14 Dec 2006 ?? ?Print Version ?Bookmark and Share

Keywords:UTAC? SMIC? TSOP? SDRAM? thin small-outline package?

The joint venture of United Test and Assembly Center (UTAC) and Semiconductor Manufacturing International Corp. (SMIC) in Chengdu is projected to register a break-even next year, according to Lee Joon Chung, UTAC president and CEO.

The testing and packaging facility, which offers TSOP services for SDRAM, began operations in late 2005. However, it still has not reached economies of scale and has been registering losses to date, said Lee.

Nevertheless, SMIC and UTAC anticipate increase in shipments and expect a break-even between expenses and profits next year. SMIC has 51 percent share of the company while UTAC has 30 percent shares. The opening of SMIC's Chengdu 8-inch wafer fab is said to likely influence the optimism of the two companies.




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