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AUSTIN, TX – The growth of flip chip and wafer level packaging is a bright spot in the industry, says researcher TechSearch International. The firm projects a compound growth rate of more than 14% for flip chip units and 14% for WLPs between 2007 and 2012.
 
The drivers for flip chip continue to be performance and form factor. The use of flip chip for a variety of wireless products will contribute to the growth in 2009. An increasing number of suppliers of ASICs, field programmable gate arrays, DSPs, chipsets, graphics and microprocessors are expanding use of flip chip with solder bumps and copper pillars in package. Flip-chip-on-board continues to be found in automotive electronics, hard disk drives and watch modules. Many companies are planning to use micro bumps through silicon via products, according to TechSearch. 
 
The growth in WLPs is driven by increased demand for thinner, lighter-weight portable products, but WLPs are adopted for both form factor and performance reasons. WLPs have typically been used for low pin count (≤50 I/O) small die size applications, including analog devices such as power amplifiers and battery management devices, MOSFETs, image sensors, controllers and integrated passives. However, WLPs are now an option for larger die sizes with higher pin counts (≥100 I/O), says the firm.
 
Gold bump demand continues to be dominated by LCD driver ICs, but die shrink has limited the growth in number of wafers. An increasing number of gold stud bumped devices are also shipping.
SAN JOSE – Rumors abound that Flextronics may be eyeing Sanmina-SCI for a possible acquisition, although neither company is talking.

A quick run-up in trading on Sanmina-SCI’s stock last week was said to be the possible result of a potential Flextronics acquisition. [http://seekingalpha.com/article/98566-sanmina-may-be-in-talks-with-flextronics?source=yahoo]

As policy, neither company will comment on merger or acquisition talks. Sanmina-SCI’s board did recently initiate a proposal to buy back outstanding shares of the company’s stock in a reverse split of three to 10 shares, a move typically taken to boost stock price and ward off hostile buyers. Sanmina-SCI has seen its share price spend much of the year hovering just above the minimum $1 average per share required for continued listing by the Nasdaq exchange, and may be taking measures to give the company more breathing room. 

That said, Sanmina-SCI has become a more viable entity over the past year, as it has rung up net profits in three of the past four quarters, and sold off its margin-challenged PC manufacturing business.

In doing so, the company has regained some of its financial footing, garnering $10.5 billion in sales last year, good for fifth among EMS/ODM firms. Gross margins and inventory turns have steadily climbed as well. The company’s most recent fiscal year ended Sept. 29.

Moreover, Flextronics and Sanmina-SCI share some common offerings, such as bare board fabrication and enclosures, and in the event of a merger could potentially shutter some of these operations to improve margins and capacity utilization.

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