STMicro starts building China backend site

November 5, 2007 – STMicroelectronics has begun construction at a new packaging/text facility in Longgang, Guangdong Province, China.

Plans call for 20,000 sq. m of manufacturing space to be ready by Sept. 2008, followed by equipment move-in during 4Q08. Eventually that size will double to 40,000 sq. m., at an undetermined time.

The site is expected to produce >800M units in its first year of operation, scalable to >10B units/year at full ramp-up (~20% of ST’s current total backend production), primarily focusing on assembly and test for power conversion devices.

In addition to expanding ST’s footprint in China (where it already has a NAND flash operation with Hynix), the new backend site “enabl[e] us to better address the expanding needs of both local and foreign customers’ operations in China, in the region, and around the world,” said Alain Dutheil, COO and vice chairman of ST’s corporate executive committee, in a statement.


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