Siliconware aiming for No. 2 spot as global supplier of IC services
Central News Agency
2014-05-17 09:50 PM
Taipei, May 17 (CNA) Siliconware Precision Industries Co., one of Taiwan's leading integrated circuit packaging and testing service providers, said Saturday that it aims to become the world's second largest supplier in two years' time. Alongside the IC firm's efforts to expand capacity and improve its competiveness, it has set a goal of unseating U.S.-based Amkor Technology Inc. as the world's No. 2 in terms of supply, said Siliconware Chairman Bough Lin at the company's sports day. In 2013, Siliconware moved into third place in the global market, with sales of US$2.34 billion, trailing Taiwan's Advanced Semiconductor Engineering Inc. with US$4.74 billion in sales and Amkor with US$2.96 billion, according to Gartner. Lin said Siliconware's second quarter consolidated sales are expected to top NT$20 billion (US$662 million), up from NT$18.06 billion in the first quarter, on demand for high-end IC packaging and testing services. If the company meets that goal, it will achieve a sales record, he added. He said Siliconware's second quarter revenue will edge closer to Amkor's first quarter sales of about US$700 million, so he has faith that Siliconware can overtake the U.S. company in two years. In April, Siliconware posted NT$6.82 billion in consolidated sales, up 5.6 percent from the previous month and 21.38 percent from a year earlier. The company's sales for May are widely expected to hit another high of more than NT$7 billion. Currently, the global IC packaging and testing services business benefits from tight supply and this trend is expected to continue into the second half of the year amid strong demand for smartphones, tablet computers and PCs, Lin said. The growing popularity in ultra-high definition TVs has also boosted the IC packaging and testing business, Lin added. Siliconware's capital expenditure for 2014 is estimated at NT$14.7 billion, which represents an upward revision of an earlier spending plan of NT$9.6 billion amid rising optimism toward global demand. The company aims to spend more on its high-end IC packaging and testing services. Over the next two to three years, the global semiconductor business will continue to grow amid rising demand for electronic gadgets in the end-user market, Lin said. In a recent research note, Barclays Capital reiterated optimism toward the global semiconductor industry and chose Siliconware, IC designer MediaTek Inc. and Taiwan Semiconductor Manufacturing Co. as its top picks among local IC stocks. Shares of Siliconware fell 1.81 percent on profit taking to close at NT$43.45 on the Taiwan Stock Exchange Friday. (By Jalen Chung and Frances Huang)
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