Private Room

http://www.digitimes.com/NewsShow/MailHome.asp?datePublish=2010/6/29&pages=PD&seq=213

Chipbond Technology has announced it plans to spend NT$2 billion (US$62 million) in capex this year, an upward revision from its originally-planned NT$1.5 billion. The LCD driver-IC backend house also revealed plans to add at least 50 testers in the third quarter.

Chipbond's merger with International Semiconductor Technology (IST) has allowed it to expand business operation, said company chairman Fei-Jain Wu, adding that the more ambitious capex target is aimed at expanding its market share.

The majority of Chipbond's 2010 capex is to expand capacity for its testing services, Wu indicated. The company expects to grow the number of its testers to 200 units by the middle of the third quarter from almost 150 units at present, Wu noted.

Wu revealed that Chipbond has grabbed new testing orders from Japan-based driver IC suppliers who are looking to lower their production costs through outsourcing.

In addition, Wu said Chipbond's new gold-bumping lines for 12-inch wafers entered volume production in May, and have been running at full capacity since. More gold-bumping capacity will come online, with monthly output expected to rise to 15,000 wafers in the third quarter from the current 7,000, according to Wu.

Chipbond also plans to expand its monthly COG (chip on glass) capacity through September, said Wu. As for COF (chip on film) capacity, the company will work to increase the production efficiency so as to increase output, Wu indicated.

Wu noted Chipbond currently has no plans to raise its contract prices for the second half of 2010, despite recent speculation that Chipbond and its peers may raise quotes to reflect rising gold costs. Chipbond's current inventory of gold is estimated at 3-4 months, according to Wu.