PSi to put up facility in China's Chengdu Hi-Tech Zone

PSi Technologies Holdings Inc., a provider of assembly and test services, and the Management Committee of the Chengdu Hi-Tech Zone (CDHT), a government entity co-sponsored by the municipal government of Chengdu and provincial government of Sichuan, have inked an investment agreement.

The agreement specifies the location and government support contracted by and provided to PSi by the Chengdu Hi-Tech Zone. The pact is a key step toward fulfilling all legal and regulatory requirements necessary to establish a 100 percent PSi owned assembly and test facility in China. The company anticipates an investment of up to $20 million over a three-year period, to be funded through internally generated cash flows and external financing.

PSi is set to begin civil works to install facilities and support equipment in the first of two pre-fabricated factories shortly, and anticipates the commencement of production by the second quarter of 2004.