With Silicon Precision Industries (SPIL) quickly catching up with Advanced Semiconductor Engineering (ASE) in copper wirebonding, ASE is currently attempting to win orders over second-tier players such as Greatek Electronics, Taiwan IC Packaging (TICP) and Lingsen Precision Industries.
Greatek indicated that a decline in copper wirebonding orders has indeed affected revenues. Its September and October 2010 revenues fell more than expected to NT$600 million from NT$900 million in August. The steep drop was largely due to inventory adjustments by clients.
Though TICP and Lingsen will be affected by ASE's aggressive moves as well, the two companies are less focused on copper wirebonding compared with Greatek.
Greatek noted that its orders are smaller volume, more varied, and at lower ASPs, which does not fit well with ASE's business strategy of high volumes for the high-end segment. Hence, ASE's recent moves are only short term, the company said. Greatek currently has over 100 copper wirebonders, and has six to seven volume shipment clients. The company will continue to develop its copper wirebonding operation.
In related news, Amkor, the world's second largest packaging and testing house, is reportedly interested in acquiring Greatek at NT$33 (US$1.08) a share. Greatek closed at NT$29.1 on November 23, 2010, up 2.11% for the day. Greatek has declined to comment on the reports.
Article translated by Willie Teng
