Powertech Technology's (PTI) plan to acquire a controlling stake in Greatek Electronics will further expand its backend service offerings and production capacity for the logic IC segment, a move to further reduce its dependence on a shrinking DRAM market, according to company chairman DK Tsai.
While undergoing a focus shift from DRAM to logic semiconductors, investing in Greatek provides PTI a better chance of becoming the number-four IC packaging and testing house worldwide, Tsai noted.
PTI recently announced the company decided to acquire an up to 51% stake in Greatek, which specializes in entry-level and mid-range semiconductor packaging and testing, for NT$25.28 (US$0.83) per share. The transaction is scheduled to close in February 2012.
By combining Greatek's design and manufacturing capabilities with PTI's in-house packaging and testing of high-end solutions and expertise in memory ICs, PTI is expected to pose a threat to the global top-3 providers of semiconductor packaging and testing services in 2013, Tsai claimed.
PTI has stepped up the development of high-end technologies, such as wafer-level CSP, copper pillar bumping, SiP, TSV and Si interposer packaging, Tsai added.
In other news, Tsai commented that the semiconductor packaging and testing industry will go through its bad times through the second quarter of 2012, which might trigger another wave of consolidation in the sector. Second-tier and less-competitive players will be forced to leave the market, or have to partner with their larger peers to survive, Tsai indicated.