Siliconware Precision Industries' (SPIL) board of directors has approved plans to revise its capex budget for 2016 to NT$17.9 billion (US$568.1 million) from NT$16.7 billion set previously, according to the IC packager.

The additonal capex for 2016 will be used mainly to expand production capacity for advanced ICs, said SPIL, adding that the company will cover cash flow from operating and financing activities.

SPIL's board also approved plans to sell an idle factory located in Hsinchu, northern Taiwan, and the factory equipment in order to save its operating costs and activate assets. Details of the sale including the buyer and financial terms will be announced when a transaction is reached, SPIL indicated.

SPIL's capex revision is to satisfy customers' demand for fan-out wafer-level packaging and other high-end packaging technologies, according to market watchers.

SPIL is expected to continue enjoying a ramp-up of orders from China- and Taiwan-based IC design houses including MediaTek and HiSilicon in the fourth quarter of 2016, said the watchers, adding that smartphones will remain a growth driver for the backend house.