UTAC tacking on more Singapore facility investments

April 21, 2006 – United Test and Assembly Center (UTAC), a provider of semiconductor assembly and test services, has opened its second production facility in Ang Mo Kio, Singapore, a 370,000 sq. ft plant that nearly doubles the company’s existing facility size. Renovations and refurbishments for the upgrade began in January, and are expected to be fully completed by early 2007.

The company plans to consolidate all of its test and total backend services for mixed-signal and logic products at the new facility, which will focus on high value-added memory test and packaging activities. It also will house a combined logistics center for all UTAC products shipping out of Singapore.

UTAC also has announced it will invest about $313 million over the next five years, to meet increased demand for test and assembly services for semiconductors. Most of the investment, funded “from internal resources,” will go toward doubling the company’s capacity of mixed signal logic and processing machines, with the remainder used for renovation and refurbishment works and the purchase of the land lease from the previous tenant. UTAC also plans to triple its number of wire bonders, as well as increase memory test capabilities by nearly 40%.

The total investment, which will add nearly 1000 employees to UTAC’s regional workforce of 3500, is being supported by the Singapore Economic Development Board through extension of tax incentives and employee training benefits.

UTAC’s Singapore facilities currently account for about two-thirds of the company’s revenues. UTAC also has manufacturing operations in Shanghai and Taiwan.


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