Samsung places orders with SPIL OSE

TAIPEI, TAIWAN: Samsung Electronics, which has seen its in-house capacity fall short due to strong demand from Apple, has placed outsourcing orders for packaging microSD card modules with Taiwan-based IC vendors Siliconware Precision Industries (SPIL) and Orient Semiconductor Electronics (OSE).

Industry observers see this development as pushing up the two Taiwan IC backend suppliers' production for microSD cards to full capacity at the end of the current year.

A DigiTimes report added that Siliconware Precision Industries and Orient Semiconductor Electronics, which form part of a small group of chip-on-board (COB) package suppliers in Taiwan, have recorded utilization rates for microSD cards by an added 90 per cent. This is as against the less than 50 per cent utilization during the first half of the current year.

SPIL had stated at its investors conference last July estimated its overall packaging utilization rate would exceed 90 per cent during the 2009 third quarter. It had also said that revenues would rise around 10 per cent sequentially. SPIL posted a net profit of NT$1.66 billion, down 30.9 per cent, during the second quarter.

Meanwhile, the other IC player OSE had clocked net loss of NT$881 million on revenues of NT$1.83 billion for the second quarter of 2009.

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