The global IC packaging and testing industry is expected to grow by a double-digit rate in 2010, according to Bough Lin, chairman of Siliconware Precision Industries (SPIL). In line with the bright outlook, SPIL's capex for 2010 is likely to top NT$14.3 billion (US$446.04 million), tripling from NT$4.7 billion allocated last year.
Lin previously estimated SPIL would budget around NT$10 billion this year.
Speaking at an investors' conference on Wednesday, Lin revealed SPIL's plans to add 500 copper wirebonders by the end of the first quarter to bring the total to 600 units. SPIL expects to see the number of its copper wirebonders reach 1,900 units at the end of the third quarter, with the segment to contribute 35% of its total wire bonding capacity.
SPIL looks to adopt copper processing for all of its wirebonding production in 2011, in response to customer demand, Lin said. Lin also noted that the company's yield rate for the copper wirebonding process has reached 99.6-99.7%, close to its high yield for the gold wirebonding segment.
In addition, SPIL plans to build new facilities at its existing production sites in Taiwan and China, according to Lin. New factory construction in Changhua, central Taiwan and at the Hsinchu Science Park (HSP) is scheduled to complete in the first or second quarter of 2011, followed by another plant in Suzhou, China in the fourth quarter.
Of SPIL's 2010 capex, NT$11.5 billion will be spent on its production facilities in Taiwan and the remainder in China, Lin said.
SPIL swung to net profits of NT$4.3 billion in the fourth quarter of 2009 from losses of NT$1.03 billion a year ago. Profits for 2009 grew 39.2% to NT$8.79 billion.
For the first quarter, Lin said SPIL's utilization rate may slide 5% sequentially due to seasonal declines across the PC, communications and memory sectors. Its utilization rates for flip-chip (FC) and logic ICs remained flat sequentially at 95% and 85%, respectively, in the fourth quarter, and 100% for the wire bonding segment.