Thursday, June 23, 2011

SPIL turning focus to SiP packaging, IDM orders

Siliconware Precision Industries (SPIL) is stepping up the development of system-in-package (SiP) specifically for use in handsets, and has been more actively expanding its IDM client portfolio, company chairman Bough Lin said on June 22.

SPIL's handset-use SiP solutions have entered the design-win stage with one to two clients, with volume shipments set to start soon, Lin revealed. SiP is a compact packaging type that supports multiple chips for portable consumer electronics devices.

In addition, SPIL has turned its focus to outsourcing orders from IDMs, Lin indicated. Component suppliers for Apple's devices, for example, are usually IDM companies, Lin noted. Acknowledging increasing IDM outsourcing would create more business opportunities, SPIL is putting a heavier emphasis on IDM orders and relationships with IDM customers, according to Lin.

Lin admitted that SPIL's IDM client portfolio is less competitive compared to that of fellow companies.

SPIL used to depend on fabless IC firms for revenue growth, with orders placed by IC design companies accounting for as high as more than 80% of SPIL's total revenues.

In other news, SPIL plans to expand capacity at its Suzhou, China plant by 50% in 2011, Lin said. The company will install an additional 500 sets of copper wirebonders at the facility between the second half of the year and early 2012, Lin added.

SPIL's planned capex budget for 2011 of US$10 billion remains unchanged, according to Lin.

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