Approach and Strategy
We are a focused independent provider of power semiconductor assembly and test services to the power semiconductor market. We provide comprehensive assembly and test services to a diverse customer base, which includes most of the major power semiconductor manufacturers in the world.
We provide our customers with a broad array of packages and services designed specifically for power semiconductors. We use our expertise in power assembly and test to benefit our customers and collaborate with them to design new power packages to address their enhanced thermal and electrical product performance requirements. We believe our focused assembly and test expertise in the power semiconductor segment, our broad package offerings and our turnkey service capability make us the preferred service provider in the power semiconductor market.
We intend to strengthen our position as a preferred worldwide provider of assembly and test services targeted specifically at the power semiconductor market in the following ways:
- Focus on the Power Semiconductor Market and Capitalize on the Trend Toward Outsourcing
- Strengthen and Expand Our Strategic Customer Relationships
- Enhance Our Power Assembly and Test Technology and Design Services
- Build Additional Assembly and Test Capacity to Serve Growing Customer Demand
- Expand into New Geographic Markets and Maintain Diversified Global Customer Base
Focus on the Power Semiconductor Market and Capitalize on the Trend Toward Outsourcing
We will continue to focus our expertise on the power semiconductor market. We intend to expand our business by capitalizing on the accelerating trend toward outsourcing in that market. The power semiconductor manufacturing services market is large and under-penetrated by independent assembly and test service providers. However, the trend toward outsourcing is expected to accelerate as an increasing number of IDM's take advantage of the cost savings and strategic advantages of outsourcing. A number of our current customers already have indicated their intention to outsource an increasing portion of their semiconductor manufacturing needs to independent manufacturing service providers. We believe that our established, strategic customer relationships provide us with a competitive advantage in capturing these outsourcing opportunities.
Strengthen and Expand Our Strategic Customer Relationships
We intend to strengthen our existing relationships with our key strategic customers to win an increasing percentage of their back-end production business. Our major IDM customers' in-house assembly and test capacity represents both our largest competition and our best opportunity for incremental growth. We intend to capture our key customers' outsourced assembly and test business by:
- Working closely with them to meet their product performance requirements
- Offering them the broadest array of power packages and services in the industry; and
- Aggressively managing our supplier relationships and the manufacturing process to reduce cost.
Enhance Our Power Assembly and Test Technology and Design Services
We will continue to develop our power semiconductor assembly and test technology and design services to meet our customers' needs. We coordinate our development efforts with our customers to ensure that our packages and services meet their power design specifications and to increase the efficiency of our research and development efforts. We have hired and will continue to hire research and development professionals trained in semiconductor manufacturing. These employees will strengthen our design capability, particularly in thermal management and product applications. We intend to collaborate with our principal equipment and material suppliers to develop and access technical research.
Build Additional Assembly and Test Capacity to Serve Growing Customer Demand
We will respond to the growth in power semiconductor demand, and the increasing requirements of our customers, by expanding our assembly and test capacity in our two plants.
Expand into New Geographic Markets and Maintain Diversified Global Customer Base
We continue to expand into new geographic markets while maintaining a diversified customer base. Specifically, we are in the process of expanding into the Japanese power semiconductor market. We believe the Japanese market complements our existing customer base and represents a significant outsourcing opportunity for power semiconductor assembly and testing services. Our efforts in Japan will complement our efforts in Europe, the United States and elsewhere in Asia where we have built a balanced customer list of top-tier power semiconductor manufacturing companies.
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