Chipbond lines up US$62-mn capex plan

TAIPEI: Aimed at capacity expansion, Taiwan-based Chipbond Technology will pump in spend NT$2 billion (US$62 million) during the current year. The company, a LCD driver-IC backend player, is also planning to add close to 50 testers during the third quarter of the current year.

The capex budget for the year is in fact much above the amount earmarked earlier. The company had earlier set aside NT$1.5 billion in this regard. However, with the company now planning to spend NT$2 billion, the expansion seems to be on a bigger scale.

According to company officials, the capacity expansion is aimed at sprucing up its testing operations. The plans to add 50 testers come as part of this, it is felt. Chipbond is looking at adding to the number of its testers to 200 units by the middle of the third quarter from the current 150 units. Chipbond has also pocketed a few new testing orders from Japan-based driver IC suppliers who are looking to lower their production costs through outsourcing. The company had in fact effected a merger with International Semiconductor Technology (IST), which in turn has helped it widen business operations. With the latest capex plans turning real, the company hopes to expand its market share further.