Siliconware Precision Industries (SPIL), a Taiwan-based provider of IC packaging and testing services, will invest US$20.50 million for a 42.27% stake in Microcircuit Technology Pte. (MCT), a Singapore-based IC substrate maker, for partnership to develop next-generation IC packaging technologies, according to SPIL.

SPIL evaluated a number of target makers on their technological capabilities and willingness to cooperate with SPIL, and finally selected MCT, SPIL indicated. MCT is willing to cooperate with SPIL to develop IC substrates for use in packaging high-end logic chips, SPIL said.

According to industry sources, SPIL's investment in MCT is related to SPIL's development of CSP (chip scale package) for use in high-density packaging.

SPIL will become the second-largest shareholder of MCT, next to MCT's parent company AEM Holdings whose will decrease from 100% to 57.73%.