PSi Technologies, an independent provider of assembly and test services to the power semiconductor market, and the Management Committee of the Chengdu Hi-Tech Zone (CDHT), a government entity co-sponsored by the municipal government of Chengdu and provincial government of Sichuan, today announced the signing of an Investment Agreement, in Chengdu.
The Investment Agreement specifies the location and government support contracted by and provided to PSi by the Chengdu Hi-Tech Zone. The signing of the Investment Agreement is a key step toward fulfilling all legal and regulatory requirements necessary to establish a 100% PSi owned assembly and test facility in China. The Company anticipates an investment of up to USD$20 million over a three-year period, to be funded through internally generated cash flows and external financing.
"The signing of the Investment Agreement culminates more than 18 months of study, preparation and search with various joint venture partners contemplated and locations considered," said Arthur J. Young, Jr., Chairman and CEO of PSi Technologies. "In the end, we decided that a wholly owned and controlled PSi facility located in Chengdu presented the highest probability of success."
PSi's China-based assembly and test facility will be located in the Sichuan Chengdu Export Processing Zone, 11.4 kilometers south of the geographic center of Chengdu City, 16.4 kilometers from the Chengdu International Airport, and approximately 2 hours by air to Hong Kong. The Company will begin civil works to install facilities and support equipment in the first of two pre-fabricated factories shortly, and anticipates the commencement of production by the second quarter of 2004.