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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (13598)	2/25/2004 10:36:12 PM
From: StanX Long	Read Replies (1) \| Respond to of 95397

Sources: ASE sees booming demand for flip-chip, SIP Cage Chao, Taipei; Jack Lu, DigiTimes.com [Wednesday 25 February 2004] Advanced Semiconductor Engineering (ASE) is expected to enjoy booming demand for its flip-chip (FC) package and system in package (SIP) services in the second half of this year, making its goal for over 50% revenue growth in 2004 more realistic, according to sources. ASE reportedly has begun pilot runs for some key products from its top 10 customers, sources said. In the fourth quarter, these customers together contributed 52% of ASE’s revenues and FC generated 8% of ASE’s packaging revenues. Migration to FC packaging has picked up as cost for substrates, which accounts about 40% of a FC package, continued to drop. According to market research firm Prismark, on average FC packaging costs about US$3.70 per chip while the less-advanced BGA (ball-grid array) packaging costs US$2.70 per chip. Nvidia and ATI Technologies will begin test production of their new PCI Express-based graphics chips using ASE’s FC packaging, sources said. As reported, the two graphics IC design firms will produce their new chips using 0.11-micron process technology at Taiwan Semiconductor Manufacturing Company (TSMC). Silicon Integrated Systems (SiS) and VIA Technologies will also test produce their new north-bridge solutions and PCI Express-based chipsets at ASE. Both companies expect to launch their new products in the third quarter, sources added. For communication products, Motorola and Broadcom will very soon test run their handset solutions using ASE’s SIP technology. ASE declined to comment on the news. ASE and SPIL: January 2004 revenues (NT$m) Company Sales M/M Y/Y YTD Y/Y ASE 2,702 -21.4% 18.7% 2,702 18.7% SPIL 2,574 -7.2% 38.5% 2,574 38.5% Source: TSE, compiled by DigiTimes, February 2004.