June 25, 2007 – Advanced Interconnect Technologies (AIT) has signed a multi-year assembly service agreement with Germany’s Elmos Semiconductor, a mixed-signal ASIC provider primarily serving automotive applications, will transfer its IC assembly and supporting equipment from Holland to an AIT facility in Batam, Indonesia.

AIT’s 400,000 sq. ft. facility in Batam will house the full line of consigned equipment, used to assemble SOIC 0.300″ packages of various leadcounts for automotive applications such as climate control, powertrain, and chassis. AIT will have the option of purchasing Elmos’ equipment at a later date.

AIT already assembles similar SOIC packages for Elmos using existing AIT assembly lines, so this transfer to Batam will integrate and simplify the supply chain, according to Reinhard Senf, chief operations officer at Elmos, in a statement.

Assembling all of the ICs in Indonesia also provides improved economies of scale than splitting assembly between Europe and Asia, added Bruno Guilmart, president and CEO, AIT. The transfer is expected to be completed within a few months.

With reporting from Advanced Packaging magazine.