SINGAPORE United Test and Assembly Center Ltd. (UTAC) opened a second facility in the city-state April 20 to meet growing demand for its services.
UTAC said it plans to consolidate its test and backend services for mixed-signal and logic processing products at the 376,000-square-foot plant, which will also house a combined logistics center for all products shipped from Singapore.
Production at the plant has already commenced for some customers, and the entire facility will be complete by early 2007, UTAC said.
UTAC plans to invest about $312 million in its operations here over the next five years, much of which will go to staff and equipment for the new facility. UTAC will hire up to 1,000 new operators, engineers and support staff for the plant. It will also add 192 mixed signal and logic processing testers, 70 memory testers, and 681 new wire bonders.
UTAC Group President and CEO Lee Joon Chung said the expansion in Singapore was "driven by higher customer demand" and "part of a larger effort to alleviate current capacity constraints across the group."
The new plant "will be the first in a line of subsequent expansions of our other regional production facilities," he said.
Based on strong orders for semiconductors used in consumer products, UTAC's net profit trebled in 2005 to $41.8 million. The company said the new facility "is expected to contribute to the group's performance in 2006."