Siliconware Precision Industries (SPIL), in view of fast growing demand for ICs used in smartphones, is setting up FC (flip chip) CSP (chip scale package) capacity at its two factories in Suzhou, eastern China, according to the company.

　　SPIL has allocated a capex budget of NT$1.5 billion (US$49.7 million) for construction of the two plants, which are slated for completion in 2014 and 2015, respectively, said company chairman Bough Lin.

　　While China-based IC backend service companies may not be a threat to Taiwan-based counterparts in the next 2-3 years, they may become strong contenders in the long-term, buoyed by strong government support, Lin commented.

　　China-based IC backend service companies, including Jiangyin Changdian Advanced Packaging, Nantong Fujitsu Microelectronics and HuaTian Technology (Xian), are likely to step into the 12-inch bumping and FC CSP packaging segments before the end of 2014, according to industry sources.