STATS ChipPAC exits discrete power market

By Ann Steffora Mutschler, Senior Editor -- Electronic News, 6/11/2007

In a move aimed at focusing resources on strategic advanced products that have better long term growth prospects, Singapore-based semiconductor test and packaging service provider STATS ChipPAC Ltd. reported today it has signed a definitive agreement for the sale of select manufacturing assets to Ningbo Mingxin Microelectronics Co. Ltd., thereby transitioning the company out of the discrete power market.

Under the agreement, STATS ChipPAC said it will transfer assembly and test assets used to manufacture discrete power packages, including TO220, D2Pak, TO247 and Dpak, to Mingxin which is located in Ningbo city, Zhejiang province in China.

“We believe this agreement with Mingxin offers our existing customers in discrete power packages the best solution for their long term business needs. Mingxin's commitment and expertise in discrete power products and competitive cost structure will provide our customers with a strong partner for their future,” explained Tan Lay Koon, president and CEO of STATS ChipPAC in a statement.

Koon also noted this deal accompanies its June 2006 partnership with ANST for low lead products in June 2006 meant to refocus its portfolio on higher growth advanced products.

Mingxin focuses on products for computer, telecommunication equipment, home application, automotive, industrial and other consumer markets. Located in the Hi-Tech Park of Ningbo city, Mingxin specializes in research, development and manufacturing for a range of power, medium and small signal semiconductors.

To ensure a smooth transition for customers, STATS ChipPAC and Mingxin assured they have developed a comprehensive transfer plan leveraging the combined engineering, production and quality resources of both companies.

The transfer is anticipated to be completed within the next 18 months.

STATS ChipPAC added that it will continue to provide sales and technical support to its power customers during the transition period.