o
|
REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the fiscal year ended December 31,
2008
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
SHELL
COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
Title of Each
Class
Common
Shares, par value NT$10.00 each
|
Name of Each Exchange
on which Registered
The
New York Stock Exchange*
|
1
|
|
1
|
|
3
|
|
3
|
|
3
|
|
3
|
|
3
|
|
6
|
|
6
|
|
6
|
|
19
|
|
19
|
|
21
|
|
41
|
|
44
|
|
46
|
|
46
|
|
46
|
|
59
|
|
62
|
|
63
|
|
63
|
|
64
|
|
64
|
|
67
|
|
68
|
|
69
|
|
70
|
|
70
|
|
71
|
|
71
|
|
72
|
|
72
|
|
72
|
|
73
|
|
74
|
|
74
|
|
74
|
|
76
|
|
76
|
|
76
|
|
76
|
|
76
|
|
76
|
|
76
|
|
76
|
|
82
|
|
83
|
|
84
|
|
87
|
|
87
|
|
87
|
|
88
|
|
88
|
90
|
|
90
|
|
90
|
|
90
|
|
90
|
|
92
|
|
92
|
|
92
|
|
92
|
|
93
|
|
93
|
|
93
|
|
93
|
|
97
|
|
97
|
|
97
|
|
97
|
As
of and for the Year Ended December 31,
|
||||||||||||||||||||||||
2004
|
2005
|
2006
|
2007
|
2008
|
||||||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||
(in
millions, except earnings per share and per ADS data)
|
||||||||||||||||||||||||
ROC
GAAP:
|
||||||||||||||||||||||||
Statement
of Operations Data:
|
||||||||||||||||||||||||
Net
revenues
|
75,237.7 | 84,035.8 | 100,423.6 | 101,163.1 | 94,430.9 | 2,882.5 | ||||||||||||||||||
Cost
of revenues
|
(59,641.1 | ) | (69,518.0 | ) | (71,643.3 | ) | (72,074.7 | ) | (71,901.7 | ) | (2,194.8 | ) | ||||||||||||
Gross
profit
|
15,596.6 | 14,517.8 | 28,780.3 | 29,088.4 | 22,529.2 | 687.7 | ||||||||||||||||||
Total
operating expenses
|
(8,639.8 | ) | (8,698.6 | ) | (8,333.9 | ) | (9,791.2 | ) | (10,729.7 | ) | (327.5 | ) | ||||||||||||
Income
from operations
|
6,956.8 | 5,819.2 | 20,446.4 | 19,297.2 | 11,799.5 | 360.2 | ||||||||||||||||||
Non-operating
income (expense)
|
(3,993.9 | ) | (11,493.0 | ) | 1,805.0 | (1,945.3 | ) | (2,323.7 | ) | (71.0 | ) | |||||||||||||
Income
(loss) before income tax
|
2,962.9 | (5,673.8 | ) | 22,251.4 | 17,351.9 | 9,475.8 | 289.2 | |||||||||||||||||
Income
tax benefit (expense)
|
1,397.0 | 118.6 | (2,084.8 | ) | (3,357.4 | ) | (2,268.3 | ) | (69.2 | ) | ||||||||||||||
Income
(loss) from continuing operations
|
4,359.9 | (5,555.2 | ) | 20,166.6 | 13,994.5 | 7,207.5 | 220.0 | |||||||||||||||||
Discontinued
operations(1)
|
568.2 | 353.7 | — | — | — | — | ||||||||||||||||||
Cumulative
effect of change in accounting principle
|
(26.8 | ) (2) | — | (342.5 | ) (3) | — | — | — | ||||||||||||||||
Minority
interest in net loss (income) of subsidiaries
|
(691.6 | ) | 510.3 | (2,407.9 | ) | (1,829.2 | ) | (1,047.4 | ) | (32.0 | ) | |||||||||||||
Net
income (loss) attributable to shareholders of parent
company
|
4,209.7 | (4,691.2 | ) | 17,416.2 | 12,165.3 | 6,160.1 | 188.0 | |||||||||||||||||
Income
from operations per common share
|
1.36 | 1.11 | 3.86 | 3.58 | 2.19 | 0.07 | ||||||||||||||||||
Income
(loss) from continuing operations per common share
|
0.71 | (0.96 | ) | 3.36 | 2.26 | 1.14 | 0.03 | |||||||||||||||||
Earnings
(loss) per common share(4):
|
||||||||||||||||||||||||
Basic
|
0.82 | (0.89 | ) | 3.29 | 2.26 | 1.14 | 0.03 | |||||||||||||||||
Diluted
|
0.80 | (0.89 | ) | 3.14 | 2.18 | 1.12 | 0.03 | |||||||||||||||||
Dividends
per common share(5)
|
0.57 | 1.10 | — | 2.96 | 2.00 | 0.06 | ||||||||||||||||||
Earnings
(loss) per equivalent ADS(4):
|
||||||||||||||||||||||||
Basic
|
4.11 | (4.47 | ) | 16.46 | 11.28 | 5.71 | 0.17 | |||||||||||||||||
Diluted
|
4.01 | (4.47 | ) | 15.69 | 10.90 | 5.59 | 0.17 |
As
of and for the Year Ended December 31,
|
||||||||||||||||||||||||
2004
|
2005
|
2006
|
2007
|
2008
|
||||||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||
(in
millions, except earnings per share and per ADS data)
|
||||||||||||||||||||||||
Number
of common shares(6):
|
||||||||||||||||||||||||
Basic
|
5,121.9 | 5,248.9 | 5,291.6 | 5,390.9 | 5,392.9 | 5,392.9 |
Diluted
|
5,459.4 | 5,248.9 | 5,603.5 | 5,633.1 | 5,457.4 | 5,457.4 | ||||||||||||||||||
Number
of equivalent ADSs:
|
||||||||||||||||||||||||
Basic
|
1,024.4 | 1,049.8 | 1,058.3 | 1,078.2 | 1,078.6 | 1,078.6 |
Diluted
|
1,091.9 | 1,049.8 | 1,120.7 | 1,126.6 | 1,091.5 | 1,091.5 | ||||||||||||||||||
Balance
Sheet Data:
|
||||||||||||||||||||||||
Current
assets
|
35,894.9 | 47,544.0 | 48,762.8 | 56,902.0 | 46,366.9 | 1,415.3 | ||||||||||||||||||
Long-term
investments
|
4,907.4 | 4,898.1 | 5,734.5 | 4,850.2 | 4,327.0 | 132.1 | ||||||||||||||||||
Property,
plant and equipment, net
|
82,339.9 | 68,040.8 | 73,543.8 | 81,788.3 | 84,758.0 | 2,587.2 | ||||||||||||||||||
Intangible
assets
|
3,959.8 | 3,589.1 | 3,449.0 | 4,732.3 | 12,592.0 | 384.4 | ||||||||||||||||||
Other
assets
|
6,848.9 | 7,053.5 | 5,550.8 | 4,104.6 | 4,146.1 | 126.6 | ||||||||||||||||||
Total
assets
|
133,950.9 | 131,125.5 | 137,040.9 | 152,377.4 | 152,190.0 | 4,645.6 | ||||||||||||||||||
Short-term
borrowings(7)
|
6,852.8 | 10,523.1 | 8,499.1 | 15,773.9 | 11,473.2 | 350.2 | ||||||||||||||||||
Long-term
debts(8)
|
46,529.6 | 42,862.1 | 29,398.3 | 23,936.0 | 51,622.2 | 1,575.8 | ||||||||||||||||||
Other
liabilities(9)
|
20,851.9 | 22,890.0 | 22,016.7 | 22,927.6 | 17,133.8 | 523.0 | ||||||||||||||||||
Total
liabilities
|
74,234.3 | 76,275.2 | 59,914.1 | 62,637.5 | 80,229.2 | 2,449.0 | ||||||||||||||||||
Capital
stock
|
41,000.0 | 45,573.7 | 45,925.1 | 54,475.6 | 56,904.3 | 1,737.0 | ||||||||||||||||||
Minority
interest in consolidated subsidiaries
|
8,404.8 | 7,902.0 | 11,106.9 | 14,566.5 | 2,288.7 | 69.9 | ||||||||||||||||||
Total
shareholders’ equity
|
59,716.6 | 54,850.3 | 77,126.8 | 89,739.9 | 71,960.8 | 2,196.6 | ||||||||||||||||||
Cash
Flow Data:
|
||||||||||||||||||||||||
Net
cash outflow from acquisition of property, plant and
equipment
|
(28,521.4 | ) | (15,611.5 | ) | (17,764.2 | ) | (17,190.4 | ) | (18,583.3 | ) | (567.3 | ) | ||||||||||||
Depreciation
and amortization
|
14,786.3 | 15,032.8 | 14,488.2 | 16,626.2 | 17,244.9 | 526.4 | ||||||||||||||||||
Net
cash inflow from operating activities
|
19,206.7 | 18,751.1 | 37,310.8 | 28,310.6 | 30,728.8 | 938.0 | ||||||||||||||||||
Net
cash outflow from investing activities
|
(31,048.9 | ) | (11,632.0 | ) | (22,104.5 | ) | (18,108.4 | ) | (36,359.2 | ) | (1,109.9 | ) | ||||||||||||
Net
cash inflow (outflow) from financing activities
|
9,164.2 | (91.8 | ) | (12,581.9 | ) | (8,492.7 | ) | 13,862.4 | 423.2 | |||||||||||||||
Segment
Data:
|
||||||||||||||||||||||||
Net
revenues:
|
||||||||||||||||||||||||
Packaging
|
58,261.8 | 66,022.9 | 76,820.5 | 78,516.3 | 73,391.6 | 2,240.3 | ||||||||||||||||||
Testing
|
16,473.9 | 17,122.0 | 21,429.6 | 20,007.8 | 19,021.4 | 580.6 | ||||||||||||||||||
Others
|
502.0 | 890.9 | 2,173.5 | 2,639.0 | 2,017.9 | 61.6 | ||||||||||||||||||
Gross
profit (loss):
|
||||||||||||||||||||||||
Packaging
|
11,146.0 | 10,128.7 | 19,280.8 | 20,589.7 | 14,700.1 | 448.7 | ||||||||||||||||||
Testing
|
4,332.7 | 4,433.1 | 8,728.2 | 7,602.9 | 6,467.4 | 197.4 | ||||||||||||||||||
Others
|
117.9 | (44.0 | ) | 771.3 | 895.8 | 1,361.7 | 41.6 |
As
of and for the Year Ended December 31,
|
||||||||||||||||||||||||
2004
|
2005
|
2006
|
2007
|
2008
|
||||||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||
(in
millions, except earnings per share and per ADS data)
|
||||||||||||||||||||||||
U.S.
GAAP:
|
||||||||||||||||||||||||
Statement
of Operations Data:
|
||||||||||||||||||||||||
Net
revenues
|
75,237.7 | 84,035.8 | 100,423.6 | 101,163.1 | 94,430.9 | 2,882.5 | ||||||||||||||||||
Cost
of revenues
|
(60,030.0 | ) | (70,544.4 | ) | (73,366.9 | ) | (75,134.7 | ) | (73,109.9 | ) | (2,231.7 | ) | ||||||||||||
Gross
profit
|
15,207.7 | 13,491.4 | 27,056.7 | 26,028.4 | 21,321.0 | 650.8 | ||||||||||||||||||
Total
operating expenses
|
(7,227.6 | ) | (21,882.8 | ) | (10,113.8 | ) | (11,108.7 | ) | (10,820.7 | ) | (330.3 | ) | ||||||||||||
Income
(loss) from operations
|
7,980.1 | (8,391.4 | ) | 16,942.9 | 14,919.7 | 10,500.3 | 320.5 | |||||||||||||||||
Non-operating
income (expense)
|
(5,127.2 | ) | 1,958.5 | 1,448.4 | 71.4 | (1,351.2 | ) | (41.2 | ) | |||||||||||||||
Income
tax benefit (expense)
|
1,506.1 | 190.3 | (1,980.7 | ) | (3,262.5 | ) | (2,503.5 | ) | (76.4 | ) | ||||||||||||||
Discontinued
operations(1)
|
568.2 | 353.7 | — | — | — | — | ||||||||||||||||||
Cumulative
effect of change in accounting principle
|
(26.8 | )(2) | — | (296.5 | )(10) | — | — | — | ||||||||||||||||
Minority
interest in net loss (income) of subsidiaries
|
(603.3 | ) | 358.4 | (1,991.4 | ) | (1,797.5 | ) | (1,153.5 | ) | (35.2 | ) | |||||||||||||
Net
income (loss)
|
4,297.1 | (5,530.5 | ) | 14,122.7 | 9,931.1 | 5,492.1 | 167.7 |
As
of and for the Year Ended December 31,
|
||||||||||||||||||||||||
2004
|
2005
|
2006
|
2007
|
2008
|
||||||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||
(in
millions, except earnings per share and per ADS data)
|
||||||||||||||||||||||||
Earnings
(loss) per common share(4):
|
||||||||||||||||||||||||
Basic
|
0.86 | (1.08 | ) | 2.71 | 1.87 | 1.02 | 0.03 | |||||||||||||||||
Diluted
|
0.84 | (1.08 | ) | 2.60 | 1.81 | 1.01 | 0.03 | |||||||||||||||||
Earnings
(loss) per equivalent ADS(4):
|
||||||||||||||||||||||||
Basic
|
4.29 | (5.38 | ) | 13.57 | 9.34 | 5.11 | 0.16 | |||||||||||||||||
Diluted
|
4.18 | (5.38 | ) | 12.98 | 9.03 | 5.04 | 0.16 | |||||||||||||||||
Number
of common shares(11):
|
||||||||||||||||||||||||
Basic
|
5,009.9 | 5,141.1 | 5,202.7 | 5,317.7 | 5,368.7 | 5,368.7 | ||||||||||||||||||
Diluted
|
5,340.1 | 5,141.1 | 5,505.5 | 5,566.1 | 5,405.3 | 5,405.3 | ||||||||||||||||||
Number
of equivalent ADSs(11):
|
||||||||||||||||||||||||
Basic
|
1,002.0 | 1,028.2 | 1,040.5 | 1,063.5 | 1,073.7 | 1,073.7 | ||||||||||||||||||
Diluted
|
1,068.1 | 1,028.2 | 1,101.1 | 1,113.2 | 1,081.1 | 1,081.1 | ||||||||||||||||||
Balance
Sheet Data:
|
||||||||||||||||||||||||
Current
assets
|
35,899.1 | 47,560.3 | 48,762.8 | 56,902.0 | 46,366.9 | 1,415.3 | ||||||||||||||||||
Long-term
investments
|
3,377.6 | 3,469.2 | 4,266.9 | 3,045.4 | 2,842.7 | 86.8 | ||||||||||||||||||
Property,
plant and equipment, net
|
81,849.1 | 67,547.9 | 70,894.1 | 80,036.6 | 82,694.5 | 2,524.3 | ||||||||||||||||||
Intangible
assets
|
3,954.4 | 4,112.6 | 3,972.4 | 5,255.8 | 12,940.6 | 395.0 | ||||||||||||||||||
Other
assets
|
7,008.5 | 7,284.7 | 5,834.9 | 3,766.7 | 3,963.5 | 121.0 | ||||||||||||||||||
Total
assets
|
132,088.7 | 129,974.7 | 133,731.1 | 149,006.5 | 148,808.2 | 4,542.4 | ||||||||||||||||||
Short-term
borrowings(7)
|
6,852.8 | 10,523.1 | 8,499.1 | 15,773.9 | 11,473.2 | 350.2 | ||||||||||||||||||
Long-term
debts(8)
|
46,529.6 | 42,862.1 | 29,398.3 | 23,936.0 | 51,622.2 | 1,575.8 | ||||||||||||||||||
Other
liabilities(9)
|
21,465.2 | 23,397.2 | 24,228.3 | 24,746.0 | 18,307.1 | 558.8 | ||||||||||||||||||
Total
liabilities
|
74,847.6 | 76,782.4 | 62,125.7 | 64,455.9 | 81,402.5 | 2,484.8 | ||||||||||||||||||
Minority
interest
|
8,584.0 | 8,233.0 | 11,021.3 | 14,449.2 | 2,102.7 | 64.2 | ||||||||||||||||||
Capital
stock
|
41,000.0 | 45,573.7 | 45,925.1 | 54,475.6 | 56,904.3 | 1,737.0 | ||||||||||||||||||
Total
shareholders’ equity
|
48,657.1 | 44,959.3 | 60,584.1 | 70,101.4 | 65,303.0 | 1,993.4 |
(1)
|
In
October 2005, we disposed of our camera module assembly operations in
Malaysia. Amount for 2005 includes income from discontinued operations of
NT$121.0 million and gain on disposal of discontinued operations of
NT$232.7 million, net of income tax expense. Such operations
were formerly classified as part of our packaging operations. Information
in this annual report from our consolidated statements of operations
for the years ended December 31, 2004 and 2005 has been adjusted to
reflect the reclassification of our camera module assembly operations as
discontinued operations. Information from our consolidated statements of
cash flows was appropriately not
adjusted.
|
(2)
|
Represents
the cumulative effect of our change from using the weighted-average method
to using the moving-average method to price our raw materials and
supplies.
|
(3)
|
Represents
the cumulative effect of our adoption of ROC Statement of Financial
Accounting Standards, or SFAS, No. 34 “Financial Instrument: Recognition
and Measurement” and ROC SFAS, No. 36 “Financial Instruments: Disclosure
and Presentation.” See note 3 to our consolidated
financial statements included in this annual
report.
|
(4)
|
The
denominators for diluted earnings per common share and diluted earnings
per equivalent ADS are calculated to account for the potential exercise of
options and conversion of our convertible bonds into our common shares and
American depositary shares, or
ADSs.
|
(5)
|
Dividends
per common share issued as a cash dividend and a stock
dividend.
|
(6)
|
Represents
the weighted average number of shares after retroactive adjustments to
give effect to stock dividends and employee stock bonuses. Beginning in
2002, common shares held by consolidated subsidiaries are classified as
“treasury stock”, and are deducted from the number of common shares
outstanding.
|
(7)
|
Includes
current portions of bonds payable, long-term bank loans and capital lease
obligations.
|
(8)
|
Excludes
current portions of bonds payable, long-term bank loans and capital lease
obligations.
|
(9)
|
Includes
current liabilities other than short-term
borrowings.
|
(10)
|
Represents
the cumulative effect of our adoption of U.S. SFAS No. 123R, “Share-Based
Payment.” See note 33 to our consolidated financial statements included in
this annual report.
|
(11)
|
Represents
the weighted average number of common shares after retroactive adjustments
to give effect to stock dividends.
|
NT
Dollars per U.S. Dollar Noon Buying Rate
|
||||||||||||||||
Average
|
High
|
Low
|
Period-End
|
|||||||||||||
2004
|
33.37 | 34.16 | 33.10 | 33.24 | ||||||||||||
2005
|
32.13 | 33.77 | 30.65 | 32.80 | ||||||||||||
2006
|
32.51 | 33.31 | 31.28 | 32.59 | ||||||||||||
2007
|
32.85 | 33.41 | 32.26 | 32.43 | ||||||||||||
2008
|
31.52 | 33.58 | 29.99 | 32.76 | ||||||||||||
December
|
33.16 | 33.58 | 32.45 | 32.76 | ||||||||||||
2009
|
||||||||||||||||
January
|
33.37 | 33.70 | 32.82 | 33.70 | ||||||||||||
February
|
34.24 | 35.00 | 33.61 | 35.00 | ||||||||||||
March
|
34.30 | 35.21 | 33.75 | 33.87 | ||||||||||||
April
|
33.60 | 33.88 | 32.99 | 33.06 | ||||||||||||
May
|
32.87 | 33.14 | 32.55 | 32.57 |
·
|
cancel
or reduce planned expenditures for our products and
services;
|
·
|
seek
to lower their costs by renegotiating their contracts with
us;
|
·
|
consolidate
the number of suppliers they use which may result in our loss of
customers; and
|
·
|
switch
to lower-priced products or services provided by our
competitors.
|
·
|
technological
expertise;
|
·
|
price;
|
·
|
the
ability to provide total solutions to our
customers;
|
·
|
range
of package types and testing platforms
available;
|
·
|
the
ability to work closely with our customers at the product development
stage;
|
·
|
responsiveness
and flexibility;
|
·
|
production
cycle time;
|
·
|
capacity;
|
·
|
diversity
in facility locations; and
|
·
|
production
yield.
|
·
|
changes
in general economic and business conditions, particularly given the recent
global economic crisis and the cyclical nature of the semiconductor
industry and the markets served by our
customers;
|
·
|
our
ability to quickly adjust to unanticipated declines or shortfalls in
demand and market prices for our packaging and testing services, due to
our high percentage of fixed costs;
|
·
|
changes
in prices for our packaging and testing
services;
|
·
|
volume
of orders relative to our packaging and testing
capacity;
|
·
|
changes
in costs and availability of raw materials, equipment and
labor;
|
·
|
timing
of capital expenditures in anticipation of future
orders;
|
·
|
our
ability to acquire or design and produce advanced and cost-competitive
interconnect materials;
|
·
|
fluctuations
in the exchange rate between the NT dollar and foreign currencies,
especially the U.S. dollar; and
|
·
|
earthquakes,
drought, epidemics and other natural disasters, as well as industrial and
other incidents such as fires and power
outages.
|
·
|
our
future financial condition, results of operations and cash
flows;
|
·
|
general
market conditions for financing activities by semiconductor companies;
and
|
·
|
economic,
political and other conditions in Taiwan and
elsewhere.
|
·
|
our
management and policies;
|
·
|
the
timing and distribution of dividends;
and
|
·
|
the
election of our directors and
supervisors.
|
(1)
|
we
pay stock dividends on our common
shares;
|
(2)
|
we
make a free distribution of common
shares;
|
(3)
|
holders
of ADSs exercise preemptive rights in the event of capital increases;
or
|
(4)
|
to
the extent permitted under the deposit agreement and the relevant custody
agreement, investors purchase our common shares, directly or through the
depositary, on the Taiwan Stock Exchange, and deliver our common shares to
the custodian for deposit into our ADS facility, or our existing
shareholders deliver our common shares to the custodian for deposit into
our ADS facility.
|
·
|
the
proceeds of the sale of common shares represented by ADSs or received as
stock dividends from the common shares and deposited into the depositary
receipt facility; and
|
·
|
any
cash dividends or distributions received from the common
shares.
|
·
|
the
proceeds of the sale of any underlying common shares withdrawn from the
depositary receipt facility or received as a stock dividend that has been
deposited into the depositary receipt facility;
and
|
·
|
any
cash dividends or distribution received from the common
shares.
|
·
|
our
ability to provide a broad range of cost-effective semiconductor packaging
and testing services on a large-scale turnkey basis in key centers of
semiconductor manufacturing;
|
·
|
our
expertise in developing and providing cost-effective packaging,
interconnect materials and testing technologies and
solutions;
|
·
|
our
scale of operations and financial position, which enable us to make
significant investments in capacity expansion and research and development
as well as to make selective
acquisitions;
|
·
|
our
geographic presence in key centers of outsourced semiconductor and
electronics manufacturing; and
|
·
|
our
long-term relationships with providers of complementary semiconductor
manufacturing services, including our strategic alliance with TSMC, one of
the world’s largest dedicated semiconductor
foundries.
|
· Altera
Corporation
|
· NEC
Electronics Corporation
|
· ATI Technologies, Inc.
|
· NVIDIA
Corporation
|
· Broadcom Corporation
|
· NXP
Semiconductors
|
· Cambridge
Silicon Radio Limited
|
· Powerchip
Semiconductor Corp.
|
· Freescale
Semiconductor, Inc.
|
· Qualcomm
Incorporated
|
· Infineon
Technologies
|
· RF
Micro Devices, Inc.
|
· Kawasaki Microelectronics, Inc
|
· Silicon
Integrated Systems
|
· Marvell Technology Group Ltd.
|
· STMicroelectronics
N.V.
|
· Media
Tek Inc.
|
· Zoran
Corporation
|
· Microsoft Corporation
|
Process
|
Description
|
|
Circuit
Design
|
The
design of a semiconductor is developed by laying out circuit components
and interconnections.
|
|
Front-End
Engineering Test
|
Throughout
and following the design process, prototype semiconductors undergo
front-end engineering testing, which involves software development,
electrical design validation and reliability and failure
analysis.
|
|
Wafer
Fabrication
|
Process
begins with the generation of a photomask through the definition of the
circuit design pattern on a photographic negative, known as a mask, by an
electron beam or laser beam writer. These circuit patterns are transferred
to the wafers using various advanced processes.
|
|
Wafer
Probe
|
Each
individual die is electrically tested, or probed, for defects. Dies that
fail this test are marked to be discarded.
|
|
Packaging
|
Packaging,
also called assembly, is the processing of bare semiconductors into
finished semiconductors and serves to protect the die and facilitate
electrical connections and heat dissipation. The patterned silicon wafers
received from our customers are diced by means of diamond saws into
separate dies, also called chips. Each die is attached to a leadframe or a
laminate (plastic or tape) substrate by epoxy resin. A leadframe is a
|
Process
|
Description
|
|
|
miniature
sheet of metal, generally made of copper and silver alloys, on which the
pattern of input/output leads has been cut. On a laminate substrate,
typically used in ball grid array, or BGA, packages, the leads take the
shape of small bumps or balls. Leads on the leadframe or the substrate are
connected by extremely fine gold wires or bumps to the input/output
terminals on the chips, through the use of automated machines known as
“bonders.” Each chip is then encapsulated, generally in a plastic casing
molded from a molding compound, with only the leads protruding from the
finished casing, either from the edges of the package as in the case of
the leadframe-based packages, or in the form of small bumps on a surface
of the package as in the case of BGA or other substrate-based
packages.
|
|
Final
Test
|
Final
testing is conducted to ensure that the packaged semiconductor meets
performance specifications. Final testing involves using sophisticated
testing equipment known as testers and customized software to electrically
test a number of attributes of packaged semiconductors, including
functionality, speed, predicted endurance and power consumption. The final
testing of semiconductors is categorized by the functions of the
semiconductors tested into logic/mixed-signal/RF final testing and memory
final testing. Memory final testing typically requires simpler test
software but longer testing time per device
tested.
|
●
|
PRC — a fast-growing market for
semiconductor manufacturing for domestic consumption and our primary site
for serving legacy packaging
clients;
|
●
|
Korea — an increasingly important
center for the
manufacturing of memory and communications
devices;
|
●
|
Malaysia and Singapore
— an emerging center for outsourced
semiconductor manufacturing in Southeast
Asia;
|
●
|
Silicon Valley in California
— the preeminent center for
semiconductor design, with a concentration of fabless
customers; and
|
●
|
Japan — an emerging market for
semiconductor packaging and testing services as Japanese integrated device
manufacturers increasingly outsource their semiconductor manufacturing
requirements.
|
·
|
the
size of the package;
|
·
|
the
density of electrical connections the package can support;
and
|
·
|
the
thermal and electrical characteristics of the
package.
|
Package
Types
|
Number
of
Leads
|
Description
|
End-Use
Applications
|
|||
Quad
Flat Package (QFP)/ Thin Quad Flat Package (TQFP)
|
44-256
|
Designed
for advanced processors and controllers, application-specific integrated
circuits and digital signal processors.
|
Multimedia
applications, cellular phones, personal computers, automotive and
industrial products, hard disk drives, communication boards such as
ethernet, integrated services digital networks and notebook
computers.
|
|||
Quad
Flat No-Lead Package (QFN)/Microchip Carrier (MCC)
|
12-84
|
QFN,
also known as MCC, uses half-encapsulation technology to expose the rear
side of the die pad and the tiny fingers, which are used to connect the
chip and bonding wire with printed circuit boards.
|
Cellular
phones, wireless local access networks, personal digital assistant devices
and digital cameras.
|
|||
Advanced
Quad Flat No-Lead Package (aQFN)
|
104-248
|
aQFN
allows for leadless, multi-row and fine-pitch leadframe packaging and is
characterized by enhanced thermal and electrical
performance. aQFN is a cost-effective packaging solution due to
its cost-effective materials and simpler
packaging process.
|
Telecommunications
products, wireless local access networks, personal digital assistants,
digital cameras, low to medium lead count
packaging information
appliances.
|
Package
Types
|
Number
of
Leads
|
Description
|
End-Use
Applications
|
|||
Bump
Chip Carrier (BCC)
|
16-156
|
BCC
packages use plating metal pads to connect with printed circuit boards,
creating enhanced thermal and electrical performance.
|
Cellular
phones, wireless local access networks, personal digital assistant devices
and digital cameras.
|
|||
Small
Outline Plastic Package (SOP)/Thin Small Outline Plastic Package
(TSOP)
|
8-56
|
Designed
for memory devices including static random access memory, or SRAM, dynamic
random access memory, or DRAM, fast static RAM, also called FSRAM, and
flash memory devices.
|
Consumer
audio/video and entertainment products, cordless telephones, pagers, fax
machines, printers, copiers, personal computer peripherals, automotive
parts, telecommunications products, recordable optical disks and hard disk
drives.
|
|||
Small
Outline Plastic J-Bend Package (SOJ)
|
20-44
|
Designed
for memory and low pin-count applications.
|
DRAM
memory devices, microcontrollers, digital analog conversions and
audio/video applications.
|
|||
Plastic
Leaded Chip Carrier (PLCC)
|
28-84
|
Designed
for applications that do not require low-profile packages with high
density of interconnects.
|
Personal
computers, scanners, electronic games and monitors.
|
|||
Plastic
Dual In-line Package (PDIP)
|
8-64
|
Designed
for consumer electronic products.
|
Telephones,
televisions, audio/video applications and computer
peripherals.
|
·
|
smaller
package size;
|
·
|
higher
pin-count;
|
·
|
greater
reliability;
|
·
|
superior
electrical signal transmission; and
|
·
|
better
heat dissipation.
|
Package
Types
|
Number
of Leads
|
Description
|
End-Use
Applications
|
|||
Plastic
BGA
|
5-1520
|
Designed
for semiconductors which require the enhanced performance provided by
plastic BGA, including personal computer chipsets, graphic controllers and
microprocessors, application-specific integrated circuits, digital signal
processors and memory devices.
|
Telecommunications
products, global positioning systems, notebook computers, disk drives and
video cameras.
|
|||
Cavity
Down BGA
|
256-1140
|
Designed
for memory devices such as flash memory devices, SRAM, DRAM and FSRAM,
microprocessors/controllers and high-value, application-specific
integrated circuits requiring a low profile, light and small
package.
|
Telecommunications
products, wireless and consumer systems, personal digital assistants, disk
drives, notebook computers and memory boards.
|
|||
Stacked-Die
BGA
|
44-591
|
Combination
of multiple dies in a single package enables package to have multiple
functions within a small surface area.
|
Telecommunications
products, local area networks, graphics processor applications, digital
cameras and pagers.
|
|||
Flip-Chip
BGA
|
16-2401
|
Using
advanced interconnect technology, the flip-chip BGA package allows higher
density of input/output connection over the entire surface of the
dies. Designed for high-performance semiconductors that require
high density of interconnects in a small package.
|
High-performance
networking, graphics and processor applications.
|
|||
Hybrid
(Flip-Chip and Wire Bumping)
|
49-608
|
A
package technology which stacks a die on top of a probed good die to
integrate ASIC and
|
Digital
cameras, smartphones, Bluetooth applications
and
|
Package
Types
|
Number
of Leads
|
Description
|
End-Use
Applications
|
memory
(flash, SRAM and DDR) into one package and interconnecting them with wire
bonding and molding. This technology suffers from known good
die issues (i.e., one bad die will ruin the entire module). Rework is also
not an option in hybrid packages.
|
personal
digital assistants.
|
|||||
Land
Grid Array (LGA)
|
10-72
|
Leadless
package which is essentially a BGA package without the solder
balls. Based on laminate substrate, land grid array packages
allow flexible routing and are capable of multichip module
functions.
|
High
frequency integrated circuits such as wireless communications products,
computers servers and personal computer peripherals.
|
|||
Flip-Chip
Chip Scale Package (FC-CSP)
|
16-200
|
A
lightweight package with a small, thin profile that provides better
protection for chips and better solder joint reliability than other
comparable package types.
|
RFICs
and memory ICs such as digital cameras, DVDs, devices that utilize WiMAX
technology, cellular phones, GPS devices and personal computer
peripherals.
|
|||
Package-on-Package
(POP)
|
136-288
|
This
technology places one package on top of another to integrate different
functionalities while maintaining a compact size. It offers procurement
flexibility, low cost of ownership, better total system cost and faster
time to market. Designers typically use the topmost package for memory
applications and the bottomost package for ASICs. By using this
technology, the memory known good die issue can be mitigated and the
development cycle time and cost can be reduced.
|
Cellular
phones, personal digital assistants and system
boards.
|
Package
Types
|
Number
of Leads
|
Description
|
End-Use
Applications
|
|||
Wafer
Level Chip Scale Package (aCSP)
|
6-88
|
A
wafer level chip scale package that can be directly attached to the
circuit board. Provides shortest electrical path from the die
pad to the circuit board, thereby enhancing electrical
performance.
|
Cellular
phones, personal digital assistants, watches, MP3 players, digital cameras
and camcorders.
|
|||
Advanced
Wafer Level Package (aWLP)
|
189-364
|
This
technology allows the “fanout” of the package I/Os using an area larger
than the die size without the need for a separate substrate. It offers
cost effective alternatives to flip-chip and wire bumping packaging. 2D
and 3D multi-die packages can enable leadless, multi-row and fine-pitch
leadframe packages with enhanced thermal and electrical
performance.
|
Telecommunications
products, basebands and multiband
transceivers.
|
Year
Ended December 31,
|
||||||||||||
2006
|
2007
|
2008
|
||||||||||
(percentage
of packaging revenues)
|
||||||||||||
Advanced
substrate and leadframe-based packages(1)
|
82.8 | % | 86.7 | % | 88.0 | % | ||||||
Traditional
leadframe-based packages(2)
|
5.2 | 4.3 | 4.7 | |||||||||
Module
assembly
|
7.1 | 6.2 | 4.1 | |||||||||
Other
|
4.9 | 2.8 | 3.2 | |||||||||
Total
|
100.0 | % | 100.0 | % | 100.0 | % |
(1)
|
Includes
leadframe-based packages such as QFP/TQFP, QFN/MCC and BCC and
substrate-based packages such as various BGA package types (including
flip-chip and others) and LGA.
|
(2)
|
Includes
leadframe-based packages such as SOP/TSOP, SOJ, PLCC and
PDIP.
|
·
|
Customized
Software Development. Test engineers develop customized
software to test the semiconductor using advanced testing equipment.
Customized software, developed on specific testing platforms, is required
to test the conformity of each particular semiconductor type to its unique
functionality and
specification.
|
·
|
Electrical
Design Validation. A prototype of the designed
semiconductor is subjected to electrical tests using advanced test
equipment and customized software. These tests assess whether the
prototype semiconductor complies with a variety of different operating
specifications, including functionality, frequency, voltage, current,
timing and temperature range.
|
·
|
Reliability
Analysis. Reliability analysis is designed to assess the
long-term reliability of the semiconductor and its suitability of use for
intended applications. Reliability testing can include “burn-in” services,
which electrically stress a device, usually at high temperature and
voltage, for a period of time long enough to cause the failure of marginal
devices.
|
·
|
Failure
Analysis. In the event that the prototype semiconductor
does not function to specifications during either the electrical design
validation or reliability testing processes, it is typically subjected to
failure analysis to determine the cause of the failure to perform as
anticipated. As part of this analysis, the prototype semiconductor may be
subjected to a variety of analyses, including electron beam probing and
electrical testing.
|