Siliconware Precision Industries Co (矽品精密), the world’s No. 2. chip tester and packager, yesterday said its board had approved the purchase of a research and development center from unprofitable PC memory chipmaker Powerchip Semiconductor Corp (力晶半導體) for NT$1.78 billion (US$55 milion).
Siliconware Precision said the acquisition would help it meet the strong pickup in demand.
The Taichung-based company will boost capital expenditures next year to NT$10 billion, compared with NT$5.3 billion this year, to take advantage of new business opportunities in an uptrend in the industry that is expected to last over the next few years.
As the company’s factory utilization rate was near 100 percent in the third quarter, boosting its capacity will help it handle rising orders, it said.
The company told investors last month that factory utilization is expected to remain near 100 percent this quarter.
“This is an opportunity for us to bring in extra equipment quickly to join our existing production lines [and help us] cope with rising orders,” Siliconware Precision spokesman Byron Chiang (江百宏) said.
Last month, chairman Bough Lin (林文伯) said Siliconware Precision could see double-digit growth next year over this year’s figures, taking its cue from the upbeat outlook of PC chip giant Intel Corp and leading handset maker Nokia Oyj.
Powerchip, the nation’s No. 2 computer memory chipmaker, said in a filing to the Taiwan Stock Exchange that it was seeking to improve its financial structure by selling non-core assets, a move it said would aid its recovery following the global economic downturn.
Powerchip is expected to book NT$790 million in profits from the sale of the research, development and testing facility and related equipment.
Siliconware Precision said it would begin using the facilities and manufacturing equipment in the first quarter of next year at the earliest.
Shares of Siliconware Precision climbed 2.46 percent to close at NT$45.8 yesterday, while rival Advanced Semiconductor Engineering Inc (日月光半導體) gained 1.97 percent. Powerchip shares fell 4.93 percent to close at NT$3.86.
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