IC backend service company Powertech Technology (PTI) expects its capex to reach between NT$10 billion (US$299 million) and NT$12 billion in 2016, compared with the NT$7-8 billion allocated in 2015.

PTI's capex for 2016 will be used mainly to expand production capacities for advanced, high-end packaging services at its plants in both China and Taiwan, according to company president YJ Hung.

PTI's plant in Souzhou, China reached a break-even point in 2015, Hung indicated. The company plans to expand production capacity at the plant in 2016.

In addition, construction of PTI's new plant in Xian, China completed at the end of 2015. The company has begun moving equipment into the facility, said Hung, adding that it is on track to begin volume production between the end of March and early April.

PTI's Xian plant is expected to operate at full capacity in the first quarter of 2017, Hung indicated. The plant is a joint venture between PTI and memory chip vendor Micron Technology.

PTI will also be expanding its production capacity for WLP bumping and flip-chip packaging in 2016, while developing new technologies such as fan-out panel-level packaging, Hung continued.