STATS ChipPAC Inks $35M Deal with China Resources Logic
Staff Reporter -- EDN, June 22, 2006
STATS ChipPAC and China Resources Logic Ltd. (CR Logic) have signed a joint venture agreement for the assembly and test of select products in Wuxi, China.
Under the agreement, CR Logic's indirect wholly owned subsidiary Wuxi CR Micro-Assembly Technology Ltd. (ANST) will purchase more than 1,000 sets of key assembly and test equipment from STATS ChipPAC for $35 million, to be settled in cash installments over a four year period until 2010.
STATS ChipPAC will continue to provide sales and technical support to its existing customers on specific low lead count packages until Dec. 31, 2009 with customer purchase orders being placed directly with ANST.
ANST, in return, will pay STATS ChipPAC a commission on the aggregate amount of revenues generated from such orders on a quarterly basis in 2007, 2008 and 2009. Additionally, the companies said, STATS ChipPAC will receive a 25 percent ownership stake in ANST for a cash consideration of $10 million with CR Logic owning a 75 percent interest.
"We are pleased to be partnering with a global service provider like STATS ChipPAC and believe the strong alignment between the two companies will ensure the long-term success of the joint venture and bring significant benefits to customers," Zhu Jinkun, CR Logic's chairman, said in a statement. "With a proven track record of success in China, ANST provides customers competitive, high quality, high volume manufacturing services tailored specifically for mature lead frame devices."
