Taiwan-based IC substrate maker Kinsus Interconnect Technology revealed that construction of a new plant in Suzhou, China is near completion, and production will kick off in the fourth quarter of 2010. The Suzhou plant will mainly fulfill orders from the wire-bonding chip scale packaging (CSP) segment, while its Taiwan plant focuses on production of flip-chip (FC) CSP substrates.

The new China plant will initially have a monthly capacity of 20 million IC substrates, when counted based on six-layer substrates (31×31mm), according to Kinsus.

In addition, Kinsus said its PCB operations have been handed to Suzhou-based Boardtek, a subsidiary of Asustek Computer. Kinsus in March 2010 announced plans to take an over 50% stake in Boardtek, with revenues from the PCB maker to be recognized beginning in the fourth quarter.

Market watchers expect Kinsus' revenues for the third quarter to grow by 0-5% sequentially. However, Kinsus is likely to see fourth-quarter revenues decline 5% on quarter due to a drop in orders particually for networking chip-use CSP substrates, according to the watchers.

Kinsus' products for smartphones and base stations currently account for 25% and 25-27%, respectively, of the company's total revenues. Products for wireless communication and consumer electronics applications make up the remainder.