SPEL Semiconductor is India’s first & only semiconductor IC Assembly & Test Company. Established in 1988 and with a current capacity of 252 Million units per annum, SPEL has been well servicing the stringent quality requirements of its Global Customers. In the process, SPEL has further established itself as a valuable partner to its Global Customers.

SPEL initiated its $286 million 5-year growth plan with the inauguration of the Leadless Molded Package (LMP) line in Sep 2006. This package has considerably increased SPEL’s attractiveness globally. The current capacity for this package has been completely sold-out to SPEL’s existing Customers itself. To meet the increased demand for additional capacity in this package, SPEL is now further expanding within its existing facility.

Speaking about the project , Mr. Sam Varghese, CEO SPEL, said “ This new project will assist SPEL to attract new business as we cater to a growing need of Micro Thin LMPs . “ He added “With the growing popularity of thin profile mobile handsets and other small portable devices such as portable media players (PMP), MP3 players and digital cameras and camcorders, demand for products in small profile, leadless packages has increased dramatically”.

Having started with the LMP line, SPEL is now introducing 2 new small profile package lines within the same LMP family. Towards this, SPEL has now collaborated with California Micro Devices (CMD) of Milpitas, California for installing these package lines in place. CMD has been working with SPEL for a significant number of years and has been well convinced of SPEL’s QCDS (Quality, Cost, Delivery & Service) factors. The 2 new Micro Thin package lines are thin leadless molded package (TLMP) and ultra thin leadless molded package ( uTLMP).

“SPEL’s technology and manufacturing capabilities are complementary with our strategy to package our mobile handset protection products in the smallest footprints and lowest profiles,” said Robert V. Dickinson, CMD president and CEO. “We look forward to expanding upon our relationship with SPEL as we collaborate to bring up the new LMP lines this year.”

The expansion for the 2 Micro Thin package lines is at a total cost of $7.75 Million which includes a support by CMD in an amount currently estimated to be approximately $2.2 million. An agreement towards this was signed between SPEL & CMD on Jan 24, 2007, and the equipments are expected to be in place by Apr 2007. The line qualification for TLMP will be completed by Jun 2007 & for uTLMP by Aug 2007.

SPEL’s additional investment has come in the form of a $4M loan from the Indian Overseas Bank (IOB), apart from $1.5M generated internally. IOB has been well supportive of SPEL’s uniqueness. Being convinced about SPEL’s financial track record as well as the attractiveness of the new packages, IOB has moved forward to support this expansion. With this expansion, there will be an increase in SPEL’s capacity by a further 162 Million units per annum.

SPEL’s ICs are used in notebooks, cellular phones, digital cameras & PDAs. Apart from this, SPEL will be packaging & testing “Camera Modules” for mobile phones. As part of its $286 Million expansion, SPEL will be increasing its attractiveness by further expanding capacity and adding to its package portfolio while also significantly investing in R&D.

California Micro Devices Corporation is a leading supplier of application specific analog and mixed signal semiconductor products for the mobile handset, digital consumer electronics and personal computer markets. Key products include protection devices for mobile handsets, digital consumer electronics products such as digital TVs and personal computers as well as analog and mixed signal ICs for mobile handset displays. Detailed corporate and product information may be accessed at www.CMD.com.