The Hindu : Business : SPEL ties up with CMD

Online edition of India's National Newspaper
Thursday, Jan 25, 2007
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Business

Business

SPEL ties up with CMD

Special Correspondent

To install a couple of fresh lines

CHENNAI: SPEL Semiconductor has tied up with California Micro Devices (CMD) to install a couple of fresh lines to bolster its recently launched IC (integrated circuit) package known as LMP (leadless moulded package).

The two new micro thin package lines are: thin leadless moulded package (TLMP) and ultra thin leadless moulded package (UTLMP). They basically find applications in mobile handsets. Under the arrangement, SPEL would buy chips from CMD and assemble and test them at its facility in Maraimalainagar for onward shipment to the American company.

Financing support

The installation of these two lines would involve an investment of $7.75 million. CMD will extend financing support to the tune of $2.2 million to buy the equipment. Additional funds would be mobilised by way of a loan from Indian Overseas Bank worth $1.5 million. The balance would be raised through internal resources.

Addressing a press conference on Wednesday, Ar Rm Arun, Vice-Chairman of SPEL, said these lines would go on stream by August this year. He expected the line qualification for TLMP to happen by June and for UTLMP by August. Mr. Arun said SPEL was also looking at opportunities to set up units abroad. In this context, he said the company had got a couple of enquiries from the APAC region for setting up an assembly and testing unit. He, however, hastened to add that things were at a preliminary stage.

With the empowered group of ministers putting on hold clearance of SEZ (special economic zone) proposals, SPEL had to wait for the cloud to clear. SPEL, it may be recalled, had already moved an application for SEZ status.

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