Siliconware allocates capex worth NT$14.5 bil. for 2015


CNA

TAIPEI — Siliconware Precision Industries Co., one of Taiwan’s leading integrated circuit packaging and testing services providers, has budgeted NT$14.5 billion (US$462 million) in capital expenditure (capex) for 2015.

At a board meeting Thursday, the company approved the 2015 capex funds, which it increased from NT$12 billion in 2014.

The company said NT$14.5 billion for 2015 will be used largely to purchase production equipment and develop high-end processes such as flip chip, bumping, and wafer level chip scale packaging technology.

In addition, Siliconware said, it will assign more than 10 percent of the capex to expand the capacity of a plant in Jiangsu Province, China. The timeframe for spending, however, will depend on market conditions and customer demand, it said.

The increased capex is an indication that Siliconware is upbeat about the market outlook for next year, according to market analysts.

It also shows that Siliconware wants to tap into the strong global demand for mobile devices, analysts said, adding that the company is eyeing orders from Apple Inc.

They said Siliconware’s continued spending to expand capacity and improve technology is expected to help the company secure more orders, which could mean record high monthly consolidated sales of about NT$80 billion in 2015.

In the first nine months of this year, Siliconware posted NT$8.72 billion in net profit, a sharp increase up from the NT$3.63 billion recorded in the same period of last year.

As of 11:56 a.m. Friday, shares of Siliconware had climbed 1.71 percent to NT$47.60 on the Taiwan Stock Exchange, with 7.09 million shares changing hands, following gains by electronics stocks on Wall Street overnight.

The weighted index on the Taiwan main board was up 1.51 percent at 9,012.94 points.

Before Friday’s rally of the Siliconware stock on the local bourse, the revised capex plan had boosted Siliconware’s American depositary receipts on Wall Street by 2.74 percent overnight.