It also plans to transfer additional assembly and test lines for 8MOS, TO-22OF/P products for Fairchild Korea Semiconductor Co., Ltd from STS Semiconductor and Telecommunications in Korea in December 2006 and will start mass production, after quality assurance measures are reviewed, in January 2007. PSTS expects to produce more than 42,000,000 of these units per year.
Specialized products of Fairchild Korea Semiconductor provided under these transfers are Power IC and Switching IC units, which regulate and distribute high voltage and high electric current for home appliances such as TV, DVD Player, Washing Machine and Audio.
After PSTS qualified as an assembly and test site for Fairchild’s devices, such as 8SOP, 10SOP, 14SOP, 8DIP, 14DIP and others, in 2005 and 2006, PSTS has transferred assembly and test lines already from STS Semiconductor and Telecommunication in Korea for Fairchild in 2005 and anticipates the subsequent transfer of additional lines for Fairchild Korea and other customers, like Samsung Electronics Corp., in the coming years.
We expect these two additional lines that are coming online in the final months of 2006 to result in at least an additional $5,000,000 in annual sales in 2007, which is in addition to the $8,000,000 in annual sales resulting from contracts with Samsung Electronics LCD (Suzhou). Additional subsequent transfers of assembly and test lines and new contracts with additional customers will result in significantly increased sales in the coming year.
Joo Ho Choi, the manager of PSTS, said, “We are pleased to add these high tech product lines through this contract. We are now securing production capacity for various products and expect additional sales to new customers with high voltage product lines in the near future.”
Sang-Don Kim, the CEO and President of CinTel Corp., said, “PSTS is now diversifying its customer base with other world class customers, such as Fairchild Semiconductor, while maintaining strong relationships with current major customers like Samsung Electronics. This will secure the stable and rapid growth of production at PSTS. CinTel is committed to managing our business to deliver more consistent and sustainable improvements in sales and earnings.”
About Fairchild Semiconductor: (www.fairchildsemi.com)
Fairchild Semiconductor (NYSE:FCS) is the leading global supplier of high-performance power products critical to today's leading electronic applications in the computing, communications, consumer, industrial and automotive segments. As The Power Franchise(R), Fairchild offers the industry's broadest portfolio of components that optimize system power. Fairchild's 9,000 employees design, manufacture and market power, analog & mixed signal, interface, logic, and optoelectronics products.
About STS Semiconductor and Telecommunication (www.sts-semi.co.kr)
STS Semiconductor and Telecommunication is a subsidiary of BoKwang Group and the biggest semiconductor company in BoKwang's network. It began as a semiconductor packaging and testing specialty company after spinning off from Samsung Electronics in 1998 and is now becoming a leading semiconductor packaging company as well as a total solution provider for memory applications for home appliances, semiconductor, and TFT-LCD application products. STS was listed on KOSDAQ in 2001 and is publicly traded.
About Phoenix Semiconductor and Telecommunication Suzhou (PSTS): (www.psts.com.cn)
Phoenix Semiconductor and Telecommunication became a subsidiary of CinTel Corp in October 2006. It was founded by STS Semiconductor and Telecommunication in China in 2004 by acquiring certain parts of the packaging production lines from Samsung Electronics Corporation's China plant (SESS). It began mass production in 2005 and its main customer is Samsung Electronics Corporation, the largest semiconductor manufacturer in the world. PSTS's main products are semiconductor packaging, NAND flash memory and LCD assembly.
About CinTel Corp: (www.cintelcorp.net)
While CinTel maintains its position as a leader in Internet Traffic Management (ITM) systems, it has also begun expansion into creative new markets and worldwide distribution of Korean- and Chinese-based technologies. With its main headquarters in North America and operations worldwide, CinTel Corp. provides a range of enterprise technology solutions. Founded in 1997, CinTel introduced Korea's first dynamic server load balancer, which has now evolved into a world-class product line. With its ever expanding solutions with key partners and internal development, CinTel has created a conglomerate of technology products to include NAND flash memory packaging, LCD assembly, semiconductor packaging and testing specialists, as well as a total solution provider for memory applications for home appliances, semiconductor and TFT-LCD application products. CinTel's award-winning ITM solutions are marketed to customers worldwide, enabling customers to improve Internet and network traffic management, service levels, secure content, user experience, and reduce server loads and bandwidth demands.
Safe-Harbor Statement
This press release may contain statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
