Assembly and test activity in China heats up

In an effort to leverage the production capabilities and growing markets in China, many companies are forming partnerships or opening new facilities there. Recent announcements include:

  • Hana Microelectronics (Taiwan) is canceling expansion plans in Thailand and investing instead in its Shanghai factory. Richard Han, Hana's executive vice-chairman and chief executive, cited the investment climate and infrastructure in China compared to Thailand.
  • Fairchild Semiconductor began construction on a new 800,000 square foot facility in Suzhou for assembly and test of logic, discrete and analog products. The company stated that it has other plans to expand in China, as well.
  • ChipMOS Technologies (Taiwan) will build an assembly and test facility in the Shanghai Qingpu Industrial Zone, with full production beginning in 2005. The capacity there will be 50 million units per month.
  • Carsem announced that it will build a factory in the Suzhou Industrial Park near Shanghai. The first phase, to be completed in early 2003, will produce Carsem's Micro and SO packaging and provide mixed signal and radio frequency testing. The second phase will include the micro lead frame package family and more wafer probe and final test functions.
  • Everett Charles Technologies and its German partner ATG test systems will form a new company for applications support and other functions for its electrical test products in the Shanghai and Beijing areas.
  • Amkor Technology announced that its new factory in the Shanghai Waigaoqiao Free Trade Zone is progressing ahead of schedule. Amkor is also entering into an agreement with Grace Semiconductor Manufacturing Company (GSMC) of Shanghai to provide GSMC with business and logistical support of its wafer fab, as well as assembly and test services for GSMC's customers.
  • ChipPAC also announced an agreement with GSMC to provide assembly and test services for its customers. Dennis McKenna, chairman and CEO of ChipPAC, said that “ChipPAC is working with all of China's major fabs,” in reference to a previous announcement by ChipPAC about a similar alliance with Shanghai's Semiconductor Manufacturing International Corp.

Such announcements are likely to continue as the semiconductor industry in China takes shape. According to SEMI, China currently meets less than a quarter of its own demand for semiconductors.


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