Greatek Electronics has granted Powertech Technology (PTI), which holds 44.09% of its stock, six out of seven board seats with PTI chairman DK Tsai reelected as the chairman of Greatek's board, according to an announcement made by Greatek.

Investing in Greatek, which specializes in entry-level and mid-range semiconductor packaging and testing, would further expand PTI's backend service offerings and production capacity for the logic IC segment, as part of PTI's plans to reduce its dependence on a shrinking DRAM market, Tsai said previously.

PTI has close ties with Japan-based IDM companies while Greatek is more focused on orders placed by Taiwan-based IC design houses. Collaboration would help the pair expand their customer portfolios, market watchers believe.

Resources and technology support from PTI will also help Greatek overcome bottlenecks and enhance its R&D capability, the watchers indicated. Greatek has started developing its bumping services and will take over PTI's facilities for 12-inch wafer manufacturing to step up the process development, the watchers said.

In the last two years, PTI has been developing high-end packaging technologies for logic ICs including wafer-level, copper pillar bump, TSV and RDL (redistribution line) packaging services.

PTI has budgeted NT$5-6 billion in capex for 2012 with the majority of the amount to be spent on its logic IC packaging, which will account for 20% of company revenues in the year.