STATS ChipPAC to consolidate operations

The consolidation will span over several phases in 2013 and 2014, and the closure of its Malaysia plant by the end of 2014. Tan Lay Koon, President and Chief Executive Officer, STATS ChipPAC, said, “The announced plan will consolidate our manufacturing footprint into larger scale plants and achieve a more competitive cost structure over the longer term.” The Company currently expects to incur total charges of approximately $39 million, comprising employee severance and benefit costs of approximately $19 million, non-cash asset impairment charges of approximately $18 million and other associated costs of approximately $2 million. Of the total charges, approximately $37 million and $2 million will be incurred in the second quarter of 2013 and in 2014, respectively. The plant closure will affect approximately 1'100 of our employees in Malaysia, representing approximately 11% of our total global workforce. The Company will ensure that fair severance benefits and outplacement support will be provided to affected employees.