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NXP, ASE to build testing and packaging center in China

Posted: 06 Feb 2007 ?? ?Print Version ?Bookmark and Share

Keywords:NXP Semiconductors? Advanced Semiconductor Engineering? ASE?

NXP Semiconductors and Advanced Semiconductor Engineering Inc. (ASE) will form a joint venture in Suzhou, China focused on semiconductor testing and packaging for mobile communications, consumer electronics and automotive products. ASE will have a 60 percent stake with NXP holding the remaining 40 percent.

"We're pleased to be able to strengthen our relationship with ASE through the formation of this joint venture and appreciate the willingness of governments to help in this regard," said Ajit Manocha, chief manufacturing officer, NXP Semiconductors. "The joint venture combines the expertise of both companies to provide high-quality, competitive products to address the needs of electronics manufacturers around the world."

The new company will be located at NXP's existing manufacturing site in Suzhou and will begin operations this second quarter. NXP will contribute its existing testing and packaging operation in Suzhou as its initial investment into the joint venture.

Terms of the agreement are still subject to final negotiations between NXP and ASE, as well as approvals from regulatory authorities. No financial details will be disclosed.

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