Site:

ST Assembly Test Services (STATS) - Singapore

Participants:

J. C. Lee, General Manager

Mission and Strategy

• STATS was incorporated in January of 1995. The shareholders of STATS include Singapore Technologies, EDB, and Seiko-Epson in Japan. STATS has an approved capital plan of $317.75 million and it currently has $76.25 million of installed equipment.
• Other members of the semiconductor group are TriTech Microelectronics International (IC design), Chartered Semiconductor Manufacturing (wafer fab), and CiNERGi Technology & Devices (distribution).
• ST Assembly Test Services provides one-stop service to customers for assembly and testing of ICs.
• Customers include 20 electronic companies, many of which obtain fab services from Chartered Semiconductor. Seiko-Epson provides technology transfer and obtains packaging capacity and preferential pricing.
• STATS offers customers total cost reduction and reduced cycle time. It provides a 2.5-day turnaround on samples at no extra charge.

Key Elements of Presentation

• First assembly started in August 1995 and the first profitable month was December 1995
• STATS leased 60,000 square feet from Jurong Town Corporation in 1995. It also utilizes 30,000 square feet at Chartered Semiconductor for IC test. It will occupy a new 500,000 square foot facility, currently under construction, within the next year.
• STATS is considering establishing a prototype facility within the United States.

Key Elements of Tour

• The key management team for STATS includes many years of experience with TI, Fairchild, National, and AMD.
• It currently has 410 employees, growing to 600 by the end of 1996.

Key Results

• STATS' new capital investment provides highly automated and faster equipment that provides better quality and shorter cycle times than existing competitors who have a "mixed bag" of equipment.
• The Singapore free port allows faster shipment to customers than competitors in Taiwan who require customs clearance.

Conclusions

STATS' current IC packaging menu focuses on higher-value-added, larger-pin-count packages of QFP and PLCC devices. Its planned packages include the addition of BGA, TQFP, and TSOP devices.