June 10, 2002 – Taipei, Taiwan – Packaging-substrate maker Phoenix Precision Technology Corp. of Taiwan will team up with Intel Corp. to set up an NT$4 billion (US$117.64 million) line to make 3G flip-chip substrates.

Siliconware Precision Industries Co. Ltd., one of Taiwan’s chip packaging suppliers, is a major investor in Phoenix Precision, reported the Financial Times.

The new facility will turn out an estimated four million substrates next year, when it reaches full capacity. Initial spending on the line is NT$1 billion for initial output of 300,000 to 400,000 substrates/month by the end of this year.

Phoenix Precision and Siliconware Precision chairman W.P. Lin said that the new line would meet expected demand for the new-generation packaging substrates from chipset and graphic-chip suppliers in the second half. Lin said that chipsets and graphic chips would completely shift to flip-chip packaging process in the second half. Some suppliers, including Intel, have begun using 2G substrates, he said. Lin expressed optimism about the future of the flip-chip packaging industry in Taiwan, noting that the island has become a world-leading base for graphic chip foundry services.

Intel has agreed to provide technology and validation support to Phoenix Precision. Lin estimated that the chip packaging and testing industries would begin reviving in the second half and will continue into 2003 and 2004 as chipset and graphic chip makers, including Intel, ATI and Nvidia, roll out new products. A new wave of computer procurement is also expected to begin in the second half or early next year and continue into 2004, he said.