Mon, May 19, 2014 - Page 14 News List

Siliconware aims to take No. 2 spot in IC services

TWO-YEAR COUNTDOWN:The local IC packaging and testing firm plans to spend NT$14.7 billion this year in its quest to topple US rival Amkor, chairman Bough Lin said

Staff writer, with CNA

Siliconware Precision Industries Co (SPIL, 矽品精密), one of the nation’s leading integrated circuit (IC) packaging and testing service providers, on Saturday said that it aims to become the world’s second-largest supplier within two years.

Alongside efforts to expand capacity and improve competitiveness, SPIL has set a goal of unseating US-based Amkor Technology Inc as the world’s No. 2 in terms of supply, SPIL chairman Bough Lin (林文伯) said at the company’s annual sports day.

Last year, SPIL moved into third place globally, with sales of US$2.34 billion, trailing local peer Advanced Semiconductor Engineering Inc’s (日月光半導體) US$4.74 billion in sales and Amkor’s US$2.96 billion, according to data from technology market research firm Gartner Inc.

Lin said SPIL’s second-quarter consolidated sales are expected to top NT$20 billion (US$662 million), up from NT$18.06 billion in the first quarter, on the back of demand for high-end IC packaging and testing services.

If the company meets that goal, it will achieve a sales record, Lin added.

He said SPIL’s second-quarter revenue will edge closer to Amkor’s first-quarter sales of about US$700 million, so he has faith that Siliconware can overtake the US company within two years.

Last month, SPIL posted NT$6.82 billion in consolidated sales, up 5.6 percent from the previous month and up 21.38 percent from a year earlier. This month’s sales are widely expected to hit another high, exceeding NT$7 billion.

The global IC packaging and testing services business benefits from tight supply that is expected to continue into the second half of the year amid strong demand for smartphones, tablet computers and PCs, Lin said.

The growing popularity of ultra-high definition TVs has also boosted the IC packaging and testing business, Lin added.

SPIL’s capital expenditure this year is estimated at NT$14.7 billion, which represents an upward revision of an earlier spending plan of NT$9.6 billion amid rising optimism regarding global demand. The company aims to spend more on its high-end IC packaging and testing services.

Over the next two to three years, the global semiconductor business will continue to grow amid rising demand for electronic gadgets in the end-user market, Lin said.

In a recent research note, Barclays Capital reiterated optimism toward the global semiconductor industry and chose SPIL, IC designer MediaTek Inc (聯發科) and Taiwan Semiconductor Manufacturing Co (台積電) as its top picks among local IC stocks.

Siliconware Precision Industries Co shares fell 1.81 percent on Friday amid profit-taking to close at NT$43.45 on the Taiwan Stock Exchange.

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