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Amkor, STATS ChipPAC and ASE to share backend orders for Apple A8 chip, say sources
Mavis Hong, Taipei; Jessie Shen, DIGITIMES [Monday 27 January 2014]
Amkor Technology and STATS ChipPAC have each obtained 40% of the total packaging orders placed by Apple for its next-generation A8 processor, with the remaining 20% will be taken over by Advanced Semiconductor Engineering (ASE), according to industry sources.
Apple's A8 chip will be a package-on-package (PoP) SoC solution comprising processors and mobile DRAM in a single package, said the sources.
Taiwan Semiconductor Manufacturing Company (TSMC), which is believed to have landed foundry orders for Apple's next-generation A8 chip, has also secured wafer bumping orders for the processor as part of its turnkey solution, the sources indicated.
TSMC reportedly will start ramping up production using 20nm process technology for Apple's A8 chip in the second quarter of 2014.
Amkor has received 40% of the OSAT orders for Apples A8 processor using PoP SoC. This must be the "household name" that Kelley spoke about. This should well put them over the 3 billion mark for 2014.
That is partly why I held above 6. I want to see what the new leadership can deliver and would agree, we need a few more quarters of activity (A distant ship's smoke on the horizon). I find it very hard to say what level given the cyclical nature of this business, past weak performance by management and the various capital markets transactions they have undertaken (just when I do get comfortable they begin to underperform). This seems like a tough business and too commodity in nature now.
I have probably been the harshest critic for a long time, but for some reason (maybe I'm just uncomfortably numb) I'm easing off the pedal. I see upside and gradual strengthening. Questions are: to what level and when do I finally get the hell out?
How much time do you have? This has really been an opportunity cost over the past two years and there is a lot of ground to make up. I am embarrassed to admit I have been a holder through this period.
We longs may at last see hope for improvement with the moves and plans that Kelley has announced and now that the semi market is expanding nicely but until they actually show the market the numbers, not a lot is going to happen. The past track record is way too poor. The large firms are happy to push the price around, making money on the trades not the value of the company.
When Amkor has increased capacity utilization to the mid 90's, driven earnings towards $1.00 a share, moved on the remaining stock buy back, settled with Tessera, improved the Asia sales and support force, and make real efforts to reduce debt, good things will happen. That’s a long list but one I think is doable, if they are part of the key goals of management. 2014 market forecasts indicate the time is right. Now they just have to execute. Hope we hear that they are making real progress on most or all of the list in February during the CC.
The Taiwan press says that ASE's K7 (FC CSP) and K11 (FC BGA) plants will be told to suspend operations. Amkor should pick up a large amount of the flip chip assembly.
I don't see an actual shut down, might be some fines. If a few customers look our way that could just speed things up for what looks to be a very good year.