Siliconware Precision Industries (SPIL) chairman Bough Lin on April 27 confirmed that the company has been facing stretched lead times for its IC substrates due to limited availability of bismaleimide-triazine (BT) resin. But the company expects to resume normal supply as early as June.

Shortages of BT resin have a significant impact on fine-pitch substrates used in handheld devices, in particular, high-end handsets, Lin indicated.

However, only 2-4% of SPIL's substrate shipments are affected by failure of BT resin supplies from Japan, as most of its handset clients do not demand fine-pitch packages, Lin said.

Lin revealed that the average lead time for IC substrates is in the 75-to-125-day range, well beyond the normal 60 to 90 days expected.

SPIL has been notified by its suppliers of BT resin that deliveries should be back to normal between June and July, Lin noted. He also believes that supply chain bottlenecks triggered by Japan's quake and tsunami in March will be sorted out by the time the year's peak season begins. Overall market conditions should improve in the second half of 2011, Lin added.

While commenting on SPIL's financial results in the most recent quarter, Lin said sales were affected by the strengthening of the NT dollar. Meanwhile, rising sales of copper wire bonding services also dragged down the company's overall ASP.

SPIL reported NT$14.47 billion (US$501 million) in consolidated revenues for the first quarter of 2011, down 6.5% sequentially. Gross margin and operating margin for the first quarter grew to 15.2% and 8.2%, respectively, from 14.3% and 7.9% in the prior quarter. It generated NT$1.07 billion in first-quarter net profits, which translated into an EPS of NT$0.34.