Siliconware Precision Industries (SPIL) has announced that it will take a 15.8% stake in ChipMOS Technologies in exchange for all of its of LCD driver IC packaging and testing equipment as well as DRAM testing equipment, which is valued at NT$1.63 billion (US$50.88 million). The trade marks SPIL's withdrawal from the two segments.
SPIL already has a 14% stake in ChipMOS Technologies Bermuda, the parent company of ChipMOS.
SPIL has agreed that it will not operate any DRAM testing or LCD driver IC packaging and testing business in the next five years. The company's LCD driver IC backend equipment will be shifted to ChipMOS in the second quarter, and the remaining testers are set to move in July.
The equipment, including COF (chip-on-film) and COG (chip-on-glass) packaging equipment and 16 testers, that SPIL will sell to ChipMOS generated revenues of more than NT$900 million in 2009, about 1.6% of SPIL's total revenues for the year.
ChipMOS is looking to strengthen its DRAM and LCD driver IC segments after acquiring the equipment from SPIL. Packaging and testing account for 40% and 35% of ChipMOS' total revenues, with the remaining 25% covered by LCD driver IC related business, according to the company.
On the other hand, SPIL will utilize the unoccupied space to expand its logic IC packaging and testing capacity.
ChipMOS and the company to emerge from the merger of Chipbond Technology and International Semiconductor Technology (IST) are expected to lead the LCD driver IC backend market after the two acquisitions – SPIL-Chip MOS and Chipbond-IST – complete, according to industry sources. Chipbond's merger with IST is scheduled on April 1, 2010.