October 12, 2006 – Advanced Interconnect Technologies (AIT) and Integrated Device Technology Inc. (IDT) have signed a multiyear, multimillion-dollar services agreement, in which AIT will purchase assembly assets from IDT’s operations in Penang, Malaysia.
AIT will provide assembly services for BGAs and various leaded packages, e.g., TQFPs, PQFPs, BQFP, TSOPs, and SOICs. The semiconductor assembly and test services (SATS) provider will transfer all assembly manufacturing from Penang, Malaysia, to its Batam, Indonesia facility, where it is undergoing expansion to add equipment, leadframe and array package assembly, and test service areas, in order to meet growing demand for full turnkey assembly and test services.
SATS providers have noticed increasing trends toward outsourcing from IDMs, noted Bruno Guilmart, president and CEO of AIT. In addition to linking technologies to the supply chain, the agreement expands AIT’s market share, he added.
Last April IDT said it would close its IC assembly and test facility in Manila, the Philippines, and move the operations to Malaysia.