Fri, Dec 21, 2012 - Page 13 News List

SPIL to rein in spending

By Lisa Wang  /  Staff reporter

Siliconware Precision Industries Co (SPIL, 矽品精密), the world’s No. 2 chip packager and tester, cut its capital spending for next year by 31 percent to a normal level from a record high level this year.

Next year, SPIL plans to spend NT$11.3 billion (US$388 million) on equipment purchases and engineer training, the Taichung-based company said in a statement to the Taiwan Stock Exchange after the company’s board approved the budget plan

The figure was slightly higher than the initial forecast of NT$11 billion which company chairman Bough Lin (林文伯) gave investors in October.

Lin said the company’s supply remained tight because of rising demand for advanced technologies used for mobile products such as smartphones and Ultrabook computers.

This year, SPIL’s capital spending soared to NT$16.4 billion from last year’s NT$11 billion, driven by investment on cost-efficient copper bumping machines. Over the past seven years, the company spent NT$11 billion on new equipment a year on average, according to the company.

Most of the spending for next year would be on expanding capacities for advanced technologies including bumping technology, flip-chip technology and package-on-package technology for 3D chips in an effort to cope with growing customer demand, Lin said in October.

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