Memory packaging and testing house Walton Advanced Engineering (WAE) has announced it has signed an MOU to take up a LCD module (LCM) plant, including cleanrooms and installed equipment, from HannStar Display for NT$415 million (US$13.04 million). The MOU is subject to approval by Walton's board of directors in April.
The 52,150-square-meter facility is located in Kaohsiung (southern Taiwan), where Walton's production hub is located. The plant will be converted into producing DDR3 memory, according to the memory backend supplier, adding that it expects the new capacity to come on line in the fourth quarter.
Walton also revealed its capex for 2010 is now estimated at NT$4-5 billion, a 30-60% rise compared to an original budget of NT$3 billion.
Walton president Yu Hong-chi was quoted in previous reports saying the company's order visibility for DDR3 testing has extended to September. Yu said the company plans to add new capacity and expand its workforce in 2010, as its supply has been running tight.
Elpida Memory, Nanya Technology and Winbond Electronics are among Walton's major customers.