Powertech Technology Inc (力成科技), the nation's largest memory packager, said it plans to form a US$25 million chip-sorting joint venture in Taiwan with Japan’s Tera Probe Inc to build a stronger foothold in the logic chip packaging and testing market.
Powertech, which provides testing and packaging services for computer memory chipmakers such as the nation’s biggest computer memory chipmaker, Powerchip Semiconductor Corp (力晶半導體), started providing logic packaging service in the first quarter after expanding into the new field late last year to boost market share.
To create a new opportunity in the logic chip market, the companies will form the joint venture to leverage on the synergy between Tera Probe’s expertise and Powertech’s existing wafer-testing capability and market knowledge, the companies said in a statement.
“The joint venture will be a more broadly based company with a stronger portfolio of product, providing Powertech the opportunity to better capitalize on the good growth prospects in the assembly and final test market, especially for the logic semiconductor products, both in the Taiwan and overseas,” Powertech spokesman C.C. Liao (廖忠機) said in the statement.
Liao also said the expansion into the logic chip market would help Powertech catch up with the world’s top four chip-testing and packaging services providers.
The current wafer-testing services of both Tera Probe and Powertech have been focusing on the field of memory chips.
Powertech, based in Hsinchu, plans to spend NT$368 million (US$12 million) to obtain 49 percent of the venture TeraPower Technology Inc (晶兆成科技), while Tera will hold the remaining 51 percent, a joint statement on the company’s Web site said.
The joint venture will be established by the end of August and operations are expected to commence in September, the statement said.
The venture will offer wafer-testing services for semiconductor products, including computer memory, Flash Memory, SRAM and logic semiconductor products, the companies said.
Tera Probe is a chip-testing venture with Japan’s Elpida Memory Inc, US-based Kingston Technology Corp, Advantest Corp and Powertech.
In a separate statement filed to the Taiwan Stock Exchange, Powertech said it planned to spend as much as NT$500 million on Powerchip corporate bonds via private placement to cement its partnership with customers.
Powertech shares dropped 2.35 percent to NT$104 on Friday, out-performing the benchmark TAIEX index, which plunged 3.37 percent.
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