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FOR IMMEDIATE RELEASE
For enquiries, please contact:
David Ferm
Director, Investor Relations
Tel: (408) 941 3007, Fax: (408) 941 3107
email: [email protected]
Elaine Ang
Manager, Investor Relations
Tel: (65) 751 1738, Fax: (65) 755 1585
email: [email protected]
STATS COMMENTS ON BUSINESS OUTLOOK
SINGAPORE -- 22 June, 2000 -- ST Assembly Test Services Ltd (Nasdaq: STTS and
SGX: ST Assembly)("STATS" or the "Company") wishes to provide an update on its
business outlook in response to the trading activity of its stock on NASDAQ and
on the SGX in Singapore on June 21 and June 22 respectively.
Wafer supply was weaker than expected in April and May. The wafer supply has
since recovered.
Said Tan Bock Seng, Chairman and Chief Executive Officer,: "Unfortunately, the
wafer supply in April and May was weaker than expected. The wafer supply has
come back and our challenge right now is to ensure that we can turn the wafers
into finished products for our customers and recognize revenues on a timely
basis."
Added Tan Lay Koon, Chief Financial Officer,: "We are obviously disappointed
that the wafer supply was weak. We have increased our capacity in this quarter
and as a result of the weaker than expected wafer supply, our capacity
utilization was lower than expected. This will impact our gross margin."
ABOUT ST ASSEMBLY TEST SERVICES LTD
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ST Assembly Test Services Ltd (Nasdaq: STTS and SGX: ST Assembly) is a leading
semiconductor test and assembly service provider to fabless companies,
integrated device manufacturers and wafer foundries, and provides full back-end
turnkey solutions to customers world wide. With its principal operations in
Singapore and global operations in the United States, United Kingdom and Japan,
STATS has particular expertise in testing mixed-signal semiconductors which are
used extensively in fast growing communications applications such as data
networking, broadband and mobile communications. STATS also offers advanced
assembly services and has developed a wide array of traditional leadframe,
advanced leadframe and laminate, including a wide range of ball grid array
packages to serve some of the world's technological leaders. STATS was listed
on the Nasdaq National Market and the Singapore Exchange on 28 January 2000 and
31 January 2000, respectively.
For more information, visit the Company's website at www.stats.com.sg
Certain of the statements in this press release are forward-looking statements,
that involve a number of risks and uncertainties which could cause actual
results to differ materially. Factors that could cause actual results to differ
include: general business and economic conditions and the state of the
semiconductor industry; demand for end-use applications products such as
communications equipment and personal computers; decisions by customers to
discontinue outsourcing of test and assembly services; changes in customer
order patterns; rescheduling or cancellation of customer orders; changes in
product mix; capacity utilization; level of competition; pricing pressures;
continued success in technological innovation; delays in acquiring or
installing new equipment; litigation and other risks described from time to
time in the Company's SEC filings, including its annual report on Form 20-F
dated 30 March, 2000. The Company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
