N E W S For Immediate Release
Company Contacts:
Analysts: Jim Chiafery 215-784-6436
Media: Henri Van Parys 215-784-6818
Kulicke & Soffa Plans Manufacturing Move to Asia
Willow Grove, PA, February 2, 1999 - Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) today announced plans to move manufacture of its industry leading ball bonders and selected support functions to Asia. Full production is expected by mid FY 2000.
"The move to Asia of our next generation Model 8028 Automatic Ball Bonder is expected to result in significant manufacturing cost reductions to the Company. A combination of cheaper components and subassemblies, reduced freight, lower labor costs and relocation incentives should boost margins on this industry leading machine," said C. Scott Kulicke, chairman and chief executive officer of K&S. "We are in the last stages of negotiation with finalists for the location of a new manufacturing facility. Upon deciding the host country and site, we plan to install the necessary equipment and begin training during 1999, then transfer high volume production of our next generation ball bonder platform in early 2000. Being closer to the installed base of semiconductor assemblers will also help in our continuous improvement of customer satisfaction."
Company headquarters will remain in the Willow Grove area, along with strategic marketing, R&D and most administrative functions. Manufacturing in Willow Grove will be repositioned to accommodate production of wedge bonders and other specialty machines. Other equipment manufacturing operations in Israel and the Company's Packaging Materials Group (PMG) are expected to be unaffected by the move. A total of 1927 people are employed by K&S Worldwide with approximately 700 currently working in Willow Grove.
The statements in this news release regarding the Company's future plans are forward-looking statements that are subject to risks and uncertainties that could cause actual results to materially differ, either better or worse, from those projected. Such risks and uncertainties include, but are not limited to, the following: the risk of delays in locating and outfitting an acceptable site; the risk of delays in hiring satisfactory personnel; the risk of order postponements or cancellations; the risks associated with a substantial foreign customer base; the risks associated with instability in foreign capital markets and foreign currency fluctuations; the upward and downward volatility in the demand for semiconductors and for the Company's products and services; competitive pricing pressures; the risk of delays in introduction and customer qualification of new products and services; and the Company's ability to manufacture and ship its products on a timely basis. Further discussions of risk factors are also available in the Company's most recent SEC filings.
Kulicke & Soffa is the world's largest supplier of semiconductor assembly equipment. The Company serves the integrated circuit assembly market with a product line that includes wire bonding, die bonding, wafer dicing and factory automation equipment, as well as expendable tools and materials, including bonding wire, capillaries, wedges, die collets and saw blades, and has sales and service facilities worldwide. The Company's website address is www.kns.com.
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