CHINA JV TO BE RECIPIENT OF LATEST FLIP CHIP TECHNOLOGY DEVELOPED IN SINGAPORE

Joint Venture between Advanpack Solutions Pte Ltd and Jiangsu Changjiang Electronics Technology Co., Ltd. is an industry and technology first for China

Singapore, 07 August 2003 – China will be the recipient of the latest flip chip technology after a landmark official signing today between between Jiangsu Changjiang Electronics Technology Co., Ltd (“JCET”) and Advanpack Solutions Pte Ltd (“APS”) to establish Jiangyin Changdian Advanced Packaging Co Ltd (“JCAP”).  JCAP will be engaged in the bumping and packaging of semiconductor devices.

According to the agreement, JCET will contribute cash as 53.85% of the registered capital and APS will contribute equipment and license fee to the Joint Venture.  The total investment of JCAP will come up to US$38 million with an initial registered capital of US$13 million.

JCAP will have the right to use APS’ bumping and packaging technology as well as the right to manufacture and sell the products. The annual sales revenue of JCAP at the initial phase is targeted to be between US$ 10 -15 million. 

Mr Wang Xinchao, the Chairman of JCET commented:  “We are very pleased with the agreement reached between APS and ourselves as we believe that there is much synergy to be derived from this joint venture. We firmly believe that the future of JCAP is very positive and that flip chip technology will be the wave of the future for semiconductor packaging.  We therefore want to be at the forefront by offering this technology to our customers” 

Mr. Jimmy Chew Hwee Seng, the CEO of APS added:  “This partnership will see the marriage of our technological expertise with that of JCET’s high volume manufacturing  capabilities at low cost, which bodes well for the advancement of JCAP in the semiconductor industry.  It is also recognition of APS as a full-fledged technology company, which is the fruition of our investments into R&D over the years and the numerous patents for our different technologies. 

JCET is a high-tech enterprise engaged in manufacturing transistors and IC packaging. Ranked as one of the 100 best electronics companies in China for over a decade, they are the largest Chinese IC packaging company in China.   In 2003, the company achieved an annual output of 1.55 billion units of ICs and 8 billion units of large, medium and small power transistors.