IC packager Siliconware Precision Industries (SPIL) has disclosed it has spent a total of NT$710.71 million (US$24.3 million) on equipment from Kulicke and Soffa Industries for its subsidiary in Suzhou, China.

SPIL disclosed in November 2017 it had sold a 30% stake in subsidiary Siliconware Technology (Suzhou) to Tsinghua Unigroup for CNY1.026 billion (US$162 million) to facilitate its development in the China market. SPIL added proceeds from the sale will be used for further investment in its Taiwan-based headquarters.

SPIL had previously planned to form a joint venture with Tsinghua Unigroup by having the China-state-backed semiconductor group subscribe to new shares of SPIL for a 24.9% stake in the Taiwan-based IC backend company. But in April 2016 it terminated the plan. Later in 2016, SPIL reached a deal to merge with fellow company Advanced Semiconductor Engineering (ASE) by forming a new holding company, expected to be set up in May 2018 at the earliest.

In addition, SPIL in May 2017 unveiled plans to set up a production subsidiary in Jinjiang (Fujian province, China) through a third party for a total of US$45 million. The new facility will be dedicated to providing assembly and testing services for memory and logic devices.

SPIL plans to budget NT$19.2 billion for 2018 capex. The capex will be used to expand its production capacity at its new subsidiary in Fujian, and to build additional capacity of its bumping, FCBGA, WLCSP and testing production lines, according to the company.

By: DocMemory
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