In January, for exampled, Singapore's United Test and Assembly Center Ltd. (UTAC) acquired Hong Kong's Asat Holdings Ltd.

Then, Taiwan's ChipMos Technologies Ltd. recently purchased Siliconware Precision Industries Co. Ltd.'s DRAM test and LCD driver assembly and test operation lines for approximately NT$1.63 billion ($51.0 million). In effect, SPIL exited the DRAM and LCD backend areas.

So who's next in the shakeout? In my opinion, I believe ChipMos is next, because of a string of losses at the company and a shaky balance sheet. To be blunt, ChipMos has a lousy balance sheet.

It continues to spill red ink. ChipMos said revenue on a U.S. GAAP basis for the fourth quarter of 2009 was NT$3,589.8 million ($112.4 million), an increase of 17.6 percent from NT$3,052.6 million ($95.5 million) for the same period in 2008 and an increase of 7.2 percent from NT$3,347.1 million or ($104.8 million) in the third quarter of 2009.

Net loss on a U.S. GAAP basis for the fourth quarter of 2009 was NT$282.6 million ($8.8 million), and NT$3.63 ($0.11) per basic common share.

ChipMos currently expects that first quarter revenue will be flat to having growth in the single digit percentage, as compared to the fourth quarter 2009.

Under U.S. GAAP, net revenue for the fiscal year ended Dec. 31, 2009 was NT$12,150.3 million ($380.3 million), a decrease of 28.6 percent from NT$17,010.2 million ($532.4 million) for the fiscal year ended Dec. 31, 2008. Under US GAAP, net loss for the fiscal year ended Dec. 31, 2009 was NT$4,550.3 million ($142.4 million), and NT$57.50 or ($1.80) per basic common share.

In a statement, S.J. Cheng, chairman and CEO of ChipMOS, said, "In the past year, we are proud of the numerous steps taken to improve our financial strength and business structure. By working with major creditors and investors we are moving forward in a much better position with the stronger footing needed for long-term success.''

By: DocMemory
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