Taipei, Feb. 9, 2010 (CENS)--Advanced Semiconductor Engineering Inc. (ASE) plans to increase the number of copper wirebonding machines on its chip packaging lines to 1,500 to 2,000 systems by the end of the first quarter, while Siliconware Precision Industries Co., Ltd. is managing to catch up in the number.

ASE and Siliconware are Taiwan`s No.1 and No.2 chip assemblers, respectively.

Industry executives pointed out that chip assemblers have been keen to substitute copper wirebonding machines for gold machines, as gold prices have persistently climbed all the way since last year, to US$1,100 per ounce last month. In the fourth quarter of 2009, both ASE and Siliconware acquired gold at US$1,000-1,050 per ounce.

Siliconware`s executives pointed out that the company`s cost increases by one percentage point for every US$50 per ounce added to gold price.

The two companies will spend over 70% more capital this year than last year on equipment, notably copper process tools, to maintain profitability.

ASE plans to eventually increase the number of cooper machines to 3,000 systems by the end of this year from planned 1,500-2,000 systems the first quarter, while Siliconware plans to boost the number to 1,650 systems in the middle of this year and 2,150 systems by the end of this year, up from current 6,00 systems.

Siliconware`s chairman, W.P. Lin, said most of the company`s major customers are actively migrating to copper wirebonding process to cut cost. He said defect free rate with copper wirebonding process has surged to 99.6-99.7%.

(by Ken Liu)