Taiwan's Siliconware Precision gobbles up Siliconware Corp.

Taiwan's Siliconware Precision gobbles up Siliconware Corp.
TAICHUNG, Taiwan - Taiwan IC-packaging giant Siliconware Precision Industries Co. Ltd. (SPIL) announced plans to acquire the remaining shares in another local company, Siliconware Corp. (SWC), a provider of IC-testing services, for an undisclosed price.

Taichung-based SPIL, Taiwan's second largest IC-packaging company, already owned a 32.26% stake in SWC. Under the new plan, SPIL will acquire the remaining shares of SWC of Hsinchu, Taiwan. The merged company will operate as Siliconware Precision Industries.

The move will bring its assembly, packaging, and test operations under one roof, according to Bough Lin, vice chairman of SPIL. Outsource-IC testing is growing rapidly in the backend-assembly segment of the industry. Chip companies are looking for ways to reduce capital expenditures and to speed the introduction of new ICs in advanced packages, which often require new testers (see feature on outsource testing).

"The merger of SPIL and SWC will consolidate group resources and further enhance operational efficiency through integration, enabling more efficiency service to our customer," Lin said. "In addition, the merger will secure our leading position in the global packaging and testing business and further approach IDM business to sustain the continuous business growth of SPIL."

The deal is expected to be completed by year's end.