Wednesday, February 1, 2012
STATS ChipPAC has announced that the company will not resume assembly operations in its Thailand plant due to extensive equipment and facility damage beyond economic restoration. The plant is situated in the Navanakorn Industrial Estate, Pathum Thani, which was suspended due to the flooding in Thailand during the fourth quarter of 2011.
Partial operations in test and wafer-level chip scale packaging will be supported from the plant until the third quarter of 2012, STATS ChipPAC indicated. The company added it will continue to shift production to its other manufacturing sites in Singapore, Korea and China to support demand from customers affected by the disruption.
"The decision to not resume full operations in Thailand was painful but unavoidable given the significant damage to our Thailand assembly operational environment that severely affected our ability to support the ongoing demand from our customers. While the Thailand plant was suspended, we shifted production to other manufacturing locations in order to support ongoing customer demand," said Tan Lay Koon, CEO for STATS ChipPAC. "The facility restoration period and the extensive requirements of resuming full production in the Thailand plant make it uneconomical for the company to return to full manufacturing operation."
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