Siliconware Precision Industries Co (SPIL, 矽品精密), the world’s third-largest integrated circuit (IC) packaging and testing services provider, said yesterday it expects the global semiconductor industry to see a better second half of this year.
In an annual general meeting, SPIL chairman Bough Lin (林伯文) said that as many international electronics brands, such as Apple Inc, are scheduled to unveil new gadgets later this year, IC demand will increase accordingly.
Some of Siliconware’s clients have been placing orders, tightening the company’s supply in a trend that could bring more orders in the second half of the year, he said.
Due to expectations of strong demand during this year, SPIL announced earlier this year that it would raise its capital expenditure (capex) to NT$18 billion (US$600 million) from the previously planned NT$14.7 billion. The revised capex target for this year was higher than the NT$14.98 billion spent last year.
This years capex budget, the highest in SPIL’s history, will be largely used in flip chip packaging and testing services and bumping services to cater to clients needing high-end technology.
Lin said that he remains upbeat about the market conditions next year and Siliconware could maintain a similar capex for next year. He added his company would make a budget after careful analysis.
In May, the company posted NT$7.42 billion in consolidated sales for the month, up 8.76 percent from April’s NT$6.82 billion on solid demand for high-end services. Last month was the second consecutive month that SPIL saw record high sales.
Market analysts said SPIL is expected to achieve its second quarter sales guidance of NT$20.1 billion and NT$20.8 billion.
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