Taiwan’s Powertech Technology to expand chips probing business in China with $10 mil. investment
TAIPEI, NNA – Chip packaging and testing firm Powertech Technology Inc. plans to add a Chinese subsidiary to its portfolio with capital of $10 million.
Its subsidiary TeraPower Technology Inc. will expand its capacity through the investment to meet growing demand among Asian clients for initial testing of integrated circuits and microprocessors, a process called chip probing, a spokeswoman from the Taiwan-based parent company told NNA Friday.
Meeting demands from Chinese clients will become “much more convenient” with the subsidiary, she said.
The board of directors of TeraPower Technology, a 12-year-old joint venture between Powertech and Japan-based Tera Probe Inc., approved the investment on Thursday.
Powertech has not finalized a location for the new plant, said the spokeswoman, meaning its output capacity is unclear. Powertech already runs two testing design and assembly operations in China, two probing labs and admin offices in Taiwan, three investment bodies and testing labs in Japan, and still one investment business in Singapore.
Currently, Chinese capacity accounts only for a high single digit of the parent firm’s total revenue, she added.
The Taiwanese company expects high growth in wafer packaging in 2020 thanks to increases in certifications attained by their customers over the past few years, it told an investor conference on January 14.
Powertech has not been hurt by economic spillover from the Covid-19 epidemic as its plants in the Chinese cities of Xi’an and Suzhou did not stop rolling even during the Lunar New Year holiday, the spokeswoman said.
Powertech reported monthly revenue of 6.34 billion New Taiwan dollars ($209.6 million) in January, up 22.6 percent over the same month of 2019, according to a financial statement on its website.