Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
EE Times-Asia > T&M

UTAC expands Thailand packaging operations

Posted: 08 Dec 2006 ?? ?Print Version ?Bookmark and Share

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

United Test and Assembly Center Ltd (UTAC) will pump more than $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 center 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 $175 million. Lee added that UTAC will "optimize 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 percent this year.

- Jonathan Hopfner
EE Times

Article Comments - UTAC expands Thailand packaging oper...
*? You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.

Back to Top