Adlink, All Ring Tech jointly venture into chip-making equipment market

Taipei, Feb. 21, 2003 (CENS)--Foreseeing a turnaround in the world market for chip assembling and testing equipment, Adlink Technology Inc. and All Ring Tech Co., Ltd. Recently announced plans to jointly tap into the market.

The two Taiwanese manufacturers expect their cooperation to generate revenue of at least NT$100 million (US$2.9 million at US$1:NT$35) in three years. Adlink specializes in industry automation systems, while its counterpart focuses on precision machines.


Under the cooperation term, Adlink will integrate its motion cards, picolos and control systems in All Ring Tech's multi-layer ceramic cutters and double-ball mounters for ball gird array (BGA) packaging applications.

Adlink executives estimate the joint deal will sharply bolster the revenues of the two companies. They note that the industrial computer sector is increasingly stressing tailor-made solutions, efficient service, capability and competitive prices.

All Ring executives expect their company to deliver at least 100 chip-making machines by the end of this year. They attribute the bright shipment forecast to Adlink's technological support and an estimated recovery of the chip business.

A study made by the government-backed Industrial Technology Research Institute (ITRI) predicts that the market value of Taiwan's chip assembly service will grow by 23.3% this year to NT$112 billion (US$3.2 billion).

The study also indicated that the value of chip testing services in Taiwan will surge 26.1% this year to reach NT$33.8 billion (US$966 million), increasing from last year's NT$26.8 billion (US$766 million).

Adlink reported January revenue of NT$63 million (US$1.8 million), a 33% gain from last year's NT$47.4 million (US$1.4 million). The company attributed the hefty growth mostly to increased sales in Asia, which reported a 47% surge last month.

All Ring had monthly revenue of NT$61 million (US$1.7 million) last month, soaring 248% from NT$17 million (US$486,000) in the comparable period of last year and rising 60% from December last year. The company reported 2002 pre-tax earnings of NT$84 million (US$2.4 million), or NT$3.22 per share, on revenue of NT$632 million (US$18 million).