Aptos Technology, which specializes in backend services for the production of NAND flash chips and devices such as microSD cards, announced March 13 that two of its subsidiaries will merge and integrate their resources and technologies for efficiency reasons. The move will help Aptos expand its 12-inch wafer level packaging business, the company said.

ADL Engineering, which provides packaging and testing services for analog and logic ICs with customers mainly fabless companies, will merge with wafer-level packaging house Advanced Chip Engineering (ACE). ADL will be the surviving company, with the merger to be effective on April 22.

Both ADL and ACE suffered net losses in 2011, with revenues slipping on year, Aptos disclosed. ADL posted a negative EPS of NT$5.04 (US$0.17) while ACE also saw its EPS fall into negative territory at NT$0.99.

Aptos in November 2009 acquired a majority stake in ACE, whose major shareholders include Silicon Storage Technology (SST) and King Yuan Electronics Company (KYEC). Aptos said that combining ACE's expertise in fan-out type packages would enhance its wafer level packaging offering. In early 2010, Aptos signed a deal with KYEC agreeing to jointly provide customers with turnkey packaging and testing solutions for memory chips and devices.