Powertech Technology Inc.("PTI")
and Tera Probe, Inc. ("Tera Probe") established a joint venture company ("JV"), which named "TeraPower Technology Inc." in Hsinchu, Taiwan.
The initial capital of the TeraPower will be the value equivalent to twenty-five million US dollars (US$25,000,000). The equity split between the joint venture parties will be 51% Tera Probe, and 49% PTI. TeraPower will start operation in September 2008.
TeraPower will offer wafer test services for semiconductor products, including, but not limited to, DRAM, Flash Memory, SRAM, and logic semiconductor products. The annual turnover of TeraPower is expected to grow rapidly based on PTI's current production capability.
Commenting on the deal C.C. Liao, Deputy CEO & Spokesman of PTI, said: "PTI has become the world's largest assembly and final testing services company on Memory products, but there is still a long distance for PTI to catch up with the top 4 of the assembly and test services companies around the world. The JV will be a more broadly based company with a stronger portfolio of product, providing PTI the opportunity to better capitalize on the good growth prospects in the assembly and final test market, especially for the logic semiconductor products, both in the Taiwan and overseas. Through the JV, the logic IC customers could also be provided the Turn-key services. In addition, the strategic investment enables a new growth opportunity for Tera Probe's market share."
Commenting on the deal Shigeru Koshimaru, President and CEO of Tera Probe, said: "Taiwan, the global center of wafer foundry business, is a quite attractive market for Tera Probe as a wafer probing service company. In addition to that, accompanying the best partner PTI, Tera Probe has decided to set up its first overseas subsidiary in Taiwan as a joint venture with PTI. Tera Probe expects the JV will contribute to the enhancement of our business both of memory and logic devices providing the Turn-key services with Tera Probe'cutting edge technology of wafer probing and PTI's
performance in the assembly and final test business. We will provide our highly efficient wafer probing service at competitive prices to the global fabless companies and Japanese semiconductor manufacturers who use foundry services in Taiwan. We try and expect to expand our customers and business base not only in Japanese market, also world wide."