SINGAPORE -- ST Assembly Test Services Ltd. today announced plans to acquire a 51% stake in Winstek Semiconductor Corp. of Taiwan, a semiconductor-testing house. The majority interest in the Hsinchu-based startup company will be purchased for $28 million in cash, said STATS.
"Our investment in Winstek is a first strategic step to grow our business in Taiwan," said Tan Bock Seng, chairman and chief executive officer of Singapore-based STATS. "It is a tangible demonstration of STATS' commitment to invest for the future."
The investment also positions the Singapore chip-assembly and testing company in the backyard of an archrival--Advanced Semiconductor Engineering Inc. (ASE)--and it follows another competitor's move into Taiwan--Amkor Technology Inc.'s purchase of Sampo Semiconductor Corp. and Taiwan Semiconductor Technology Corp. (see June 20 story).
"Winstek will provide STATS with the platform to significantly increase our presence in Taiwan," said Tan Bock Seng. "Taiwan is a strategic market with vast opportunities. It is the home of the two largest foundries in the world and has a fast growing base of fabless IC companies," he added.
Privately-held Winstek was in April 2000. The company said it has capabilities to test optical, mixed-signal, digital and radio-frequency (RF) devices. Winstek said it also offers a range of integrated services including wafer probe, final test, turnkey and drop shipment services. Its four-story plant in Hsinchu has 220,000 square feet of manufacturing space.
Richard Weng, chairman and president of Winstek, will continue to head up the company. He has 17 years of experience in semiconductor testing, including senior positions with World Wide Test Technology Inc. and ASE, said STATS.