STATS ChipPAC Offers Complete Package on Package (PoP) Solutions With Both Top and Bottom Package Technologies

UNITED STATES -- (MARKET WIRE) -- Jan 29, 2007 -- SINGAPORE -- 1/29/2007 -- STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (NASDAQ: STTS) and (SGX-ST: STATSChP), a leading independent semiconductor test and advanced packaging service provider, today announced a complete Package on Package (PoP) solution with both top and bottom package designs for cell phones, PDAs and other handheld products. PoP is a three dimensional (3D) package technology in which two fully-tested packages are stacked during the board mount process to achieve additional functionality and configuration flexibility with a minimal increase in size.

The top package of a PoP typically integrates stacked memory devices in a Fine Pitch Ball Grid Array (FBGA) configuration, while the bottom PoP package usually contains a logic device or logic device combination (logic + logic, logic + analog, etc.). PoP solutions are customized according to the needs of the end market application and typically have a final package height of less than 1.6mm. With the ability to mix and match IC technologies as well as source devices from multiple manufacturing sources, PoP enables semiconductor companies to quickly respond to changes in market demand and modify the combination of silicon technology during final board assembly. STATS ChipPAC is in volume production on both top and bottom PoP packages.

"PoP continues to gain momentum as a flexible, successful integration technology which delivers increased device density and functionality in a smaller footprint to support the needs of the handset market. PoP solutions enable a lower mounted height approaching 1.4mm for certain package combinations," said Dr. Han Byung Joon, STATS ChipPAC's Executive Vice President and Chief Technology Officer. "The ability to offer a single manufacturing source for both top and bottom packages provides a number of benefits to our customers, including increased design compatibility, tightly controlled warpage, increased reliability, and improved board mount yields."

PoP provides significant versatility in combining top and bottom packages from different manufacturing sources. However, design compatibility is paramount to avoid solder reflow quality issues. When top and bottom PoP packages are stacked on the application board and reflowed together simultaneously during the surface mount process, high reflow temperatures can cause thin PoP packages to warp. Therefore, optimization of the substrate and package design, bill of materials, and assembly process are key to producing a reliable final solution with high board mount yields.

STATS ChipPAC's bottom PoP package was introduced in 2005 and is currently in volume production in both single and two die stack versions. The top PoP package design, integrating up to five stacked die, was qualified in the fourth quarter of 2006 and has quickly ramped to volume production.

Dr. Han commented, "Customers have the flexibility to mix and match our top and bottom PoP packages with other manufacturing sources or they have the benefit of a complete PoP solution from a proven technology leader. Our goal is to provide the best solution to meet our customer's needs."

About STATS ChipPAC Ltd.

STATS ChipPAC Ltd. ("STATS ChipPAC" or the "Company") (NASDAQ: STTS) and (SGX-ST: STATSChP) is a leading service provider of semiconductor packaging design, assembly, test and distribution solutions. A trusted partner and supplier to leading semiconductor companies worldwide, STATS ChipPAC provides fully integrated, multi-site, end-to-end packaging and testing solutions that bring products to the market faster. Our customers are some of the largest wafer foundries, integrated device manufacturers (IDMs) and fabless companies in the United States, Europe and Asia. STATS ChipPAC is a leader in mixed signal testing and advanced packaging technology for semiconductors used in diverse end market applications including communications, power, digital consumer and computing. With advanced process technology capabilities and a global manufacturing presence spanning Singapore, South Korea, China, Malaysia and Taiwan, STATS ChipPAC has a reputation for providing dependable, high quality test and packaging solutions. The Company's customer support offices are centered in the United States (California's Silicon Valley, Arizona, Texas, Massachusetts, Colorado and North Carolina). Our offices outside the United States are located in South Korea, Singapore, China, Malaysia, Taiwan, Japan, the Netherlands and United Kingdom. STATS ChipPAC's facilities include those of its subsidiary, Winstek Semiconductor Corporation, in Hsinchu District, Taiwan. These facilities offer new product introduction support, pre-production wafer sort, final test, packaging and other high volume preparatory services. Together with our research and development centers in South Korea, Singapore, Malaysia, China, Taiwan and the United States as well as test facilities in the United States, this forms a global network providing dedicated test engineering development and product engineering support for customers from design to volume production. STATS ChipPAC is listed on both the Nasdaq Stock Market and the Singapore Exchange Securities Trading Limited. In addition, STATS ChipPAC is also included in the Morgan Stanley Capital International (MSCI) Index and the Straits Times Industrial Index. Further information is available at www.statschippac.com. Information contained in this website does not constitute a part of this release.

Certain statements in this release, including statements regarding expected future financial results and industry growth, are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include general business and economic conditions and the state of the semiconductor industry; level of competition; demand for end-use applications products such as communications equipment and personal computers; reliance on a small group of principal customers; decisions by customers to discontinue outsourcing of test and packaging services; continued success in technological innovations; availability of financing; delays in acquiring or installing new equipment; our substantial level of indebtedness; potential impairment charges; ability to develop and protect our intellectual property; intellectual property rights disputes and litigation; capacity utilization; limitations imposed by our financing arrangements which may limit our ability to maintain and grow our business; pricing pressures including declines in average selling prices; changes in customer order patterns; shortages in supply of key components; disruption of our operations; loss of key management or other personnel; defects or malfunctions in our testing equipment or packages; changes in environmental laws and regulations; exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; significant ownership by Temasek Holdings (Private) Limited (Temasek Holdings) that may result in conflicting interests with Temasek Holdings and our affiliates; our ability to successfully integrate the operations of former STATS and ChipPAC and their employees; labor union problems in South Korea; uncertainties of conducting business in China; unsuccessful acquisitions and investments in other companies and businesses; and other risks described from time to time in the Company's SEC filings, including its annual report on Form 20-F dated February 28, 2006. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Singapore Contact:

Bryan Ong
Investor Relations
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Drew Davies
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Lisa Lavin
Marcom Manager
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Fax: (208) 939 4817
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The Ruth Group
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