Services, Inc. Opens High-Quality, Low-Cost Semiconductor Assembly and
Test Facility in Shanghai
Industry's First Outsource Manufacturing Facility in China Dedicated To
Clara, California, January 17, 2001-GEM
Services, Inc., a multinational semiconductor assembly and test service
provider, today announced the opening of its new, wholly-owned assembly
and test facility in Shanghai, China. GEM specializes in assembly and
test of power semiconductor packages. This new GEM factory is optimized
for the unique processes and materials used in power semiconductors.
"We believe this facility has the lowest cost
structure for power packages of any outsourcing manufacturing facility
in the world," stated R. J. Kulle, GEM's President and CEO. "Our team's
proven track record and well-developed skill set in China and Asia
Pacific provides much added value for our customers."
"Until GEM was founded," continued Kulle, "the
industry lacked a focused outsourcing company for power semiconductors,
particularly for small-outline, surface-mount packages. This void
became critical in recent years with the exploding demand for portable,
battery powered communications and computing systems. So our customers
are delighted with GEM's power semiconductor expansion into China."
GEM will invest $40 million to equip the new
30,000-square-foot (2800-square-meter) building in the Shanghai Jiading
Industrial Zone, part of metropolitan Shanghai. Qualification runs
began in July 2000, and volume production began in October 2000. In
support of its customer base-which includes three of the largest power
semiconductor manufacturers worldwide with combined power device sales
of more than $1.5 billion-GEM plans to reach a full production capacity
of 1.1 billion units per year by end of 2001. GEM will employ 400
people at this first phase of business development.
Initially, this Shanghai operation will assemble
and test DPAK, SO-8, and TSSOP-8 packages. Additional packages under
current consideration are the SOT-23, SOT-223, and TSOP-6, derivatives
of TSOP-6, and other advanced, small footprint, surface-mount packages.
GEM has also constructed a second factory building at the Jiading site
where production will begin in the second quarter of 2001.
Founded in 1998, GEM provides total management of
semiconductor assembly and test. Specializing in power semiconductors
and modules, GEM Services offers complete backend services at its
manufacturing facilities in China . The company also provides turnkey
assembly of components and assemblies, packaging design, plus selection
and management of outsource manufacturing facilities through the
company's network in the Pacific Rim.
GEM Services, Inc. is a privately held company
incorporated in the Cayman Islands with three wholly-owned
subsidiaries: GEM Services USA in North America, GEM Electronics, Inc.
in Taiwan, and GEM Services Hong Kong, Ltd., which owns the subsidiary,
GEM Electronics Shanghai Co., Ltd.