The performance of STATS ChipPAC still has been lower than expected in recent quarters following its acquisition by China-based Jiangsu Changjiang Electronics Technology for US$780 million in early 2015, according to a media report in China.
Based on the financial reports released by Changjiang Electronics, the integration between Changjiang and STATS ChipPAC has brought no difference regarding to the rankings of the global top-five IC backend service providers, said the report.
The acquisition also has failed neither to enhance the price-setting capability nor to help bring down production costs at Changjiang, commented the report.
Affected by dwindling global demand for high-end smartphone and rising backend service capability at foundry houses, STATS ChipPAC is expected to see its revenues decline 10-20% in 2016 as compared to a year earlier.
Despite lower-than-expected sales at STATS ChipPAC, Changjiang recently injected an additional investment of US$300 million into STATS ChipPAC to ramp up its FoWLP (fan-out wafer level packaging) packaging capacity, looking to generate US$100 million in revenues a year from the process.
China-based Semiconductor Manufacturing International Corporation (SMIC) is currently the largest shareholder of Changjiang, holding a 14.3% stake in the backend service company.
Article translated by Steve Shen
