Powertech plans joint venture with Broadcom in Singapore

Taipei, July 18 (CNA) Taiwan-based IC packaging and testing services provider Powertech Technology Inc. plans to set up a joint venture in Singapore with American fabless semiconductor firm Broadcom Inc. for advanced panel level IC assembly technology development.

In a statement posted on the Taiwan Stock Exchange, where Powertech shares are traded, the Taiwanese semiconductor giant said that a board meeting approved a project on Thursday to invest US$400 million and partner with Broadcom in the establishment of the joint venture.

According to Powertech, the joint venture will focus on the development of additive finger-geometry redistribution layer technology, which is seen as a revolutionary solution capable of transforming the way integrated circuits are packaged.

In line with its global expansion roadmap, Powertech said the joint project with Broadcom is expected to meet demand from international clients and allow it to work more closely with other counterparts in the global semiconductor supply chain.

Powertech said the new joint venture will not affect existing and future cooperation on fan-out panel level packaging (FOPLP) development with clients.

Despite the investment in Singapore, Powertech said it will continue to pour funds into the development of advanced IC assembly technologies and expand its production in Taiwan, and emphasized its operations in the country will continue to focus on core technologies and critical intellectual properties.

Powertech added that the joint project is pending approval from the Department of Investment Review under the Ministry of Economic Affairs and other related government agencies.

After securing regulatory approval, Powertech indicated that the company will disclose the transaction progress of the project based on the details of the plan and law.