Private Room

STATS ChipPAC, a Singapore-based provider of semiconductor testing and assembly services, has announced net profits soared to US$108 million in 2010 from US$10.1 million in 2009. Revenues for 2010 climbed 26.6% to US$1.68 billion.

Gross margin and operating margin for 2010 increased to 20.3% and 11.2%, respectively, compared to 15.7% and 4.0% in 2009.

"We are pleased to report record revenue and profits in 2010 making it the best year in our company's history," said Tan Lay Koon, president and CEO of STATS ChipPAC.

STATS ChipPAC registered US$422 million in fourth-quarter 2010 revenues, up 7% on year but down 2.3% sequentially. The company pointed out that weakness in the PC and consumer market offset strong demand in the communications market in the fourth quarter.

STATS ChipPAC revealed that its capital spending for 2010 reached US$276.7 million, about 16.5% of revenues. In 2009, capex was US$159.2 million, equivalent to 12% of its total revenues.

Judging from current order visibility, STATS ChipPAC's revenues for the first quarter of 2011 are likely to decline by a mid single-digit percentage rate from the prior quarter, Tan said.

In other news, STATS ChipPAC noted that Samsung Electronics has granted the "Best Supplier" award to the company for the second consecutive year. STATS ChipPAC supports Samsung's system LSI and memory division with its full turnkey packaging and test services for products used in digital devices such as mobile phones, computers and handheld devices such as digital music players and smartphones