Private Room

http://www.digitimes.com/NewsShow/MailHome.asp?datePublish=2010/7/29&pages=PD&seq=206

Siliconware Precision Industries (SPIL) has revealed that another 600 copper wirebonders will be installed at its production sites in China and Taiwan during the third quarter. Total spending on wirebonding equipment in 2010 is estimated at NT$8 billion (US$247.7 million), which will account for 38% of the company's capex for the year.

SPIL recently unveiled plans to budget NT$21 billion in capex this year, an upward revision from its original target of NT$14.3 billion.

Speaking at a company investors conference, SPIL chairman Bough Lin noted that 10-15 more clients will begin volume production on its copper wire bonding process in the second half of 2010. SPIL is now shipping products processed with copper wirebonding to about 10 customers.

SPIL has seen sales generated from copper wirebonding account for about 5% of its total revenues, said Lin, adding that the proportion is expected to top 20% at the end of 2010.

SPIL aims to grow its yield rate for the copper wirebonding process to 99.8-99.9% from 99.5% reached at present, Lin said.

In addition to production losses incurred from the company's transition to a copper wire process, slower demand from the PC chipset sector and capacity adjustment were other contributing factors to a weaker-than-expected second quarter, according to Lin.

SPIL's consolidated revenues grew by only 4.5% sequentially in the second quarter of 2010, falling shy of market consensus.

Lin also attributed SPIL's weaker profits in the second quarter to appreciation of the Taiwan dollar, higher material costs and human resource expenses. Lin added that SPIL has increased its workforce by 1,000 people since 2010.

Lin now projects SPIL will continue to utilize almost 100% of its wire bonding capacity in the third quarter. Meanwhile, utilization rates of its flip-chip (FC) ball-grid array (BGA) packaging and logic IC testing capacity will remain high at 95% and 80%, respectively.

http://www.digitimes.com/NewsShow/MailHome.asp?datePublish=2010/7/28&pages=VL&seq=200

Chip packaging and testing company Siliconware Precision Industries (SPIL) saw second-quarter consolidated revenues grow by only 4.5% sequentially, missing market watchers' estimates of 5-9% growth. SPIL also posted weaker profits in the quarter, raising concerns that its progress towards copper processing is slow.

SPIL generated consolidated revenues of NT$16.39 billion (US$512 million) in the second quarter, showing 11.6% growth on year, according to financial data released by the company. Net profits for the quarter were NT$1.51 billion, down 0.3% on quarter and 9.3% on year.

SPIL's second-quarter gross margin rose to 16.9% from 16% in the prior quarter.

A Chinese-language Economical Daily News (EDN) report has cited market watchers as indicating that SPIL's transition to a copper wire processes was not smooth as expected in the second quarter, which resulted in limited profit growth.

SPIL revealed in its financial report that its raw material costs totaled NT$7.88 billion in the second quarter, representing 48.1% of its total net revenues. The costs were NT$7.61 billion, or 48.5% of total net revenues in the first quarter.