Powertech Technology (PTI), a Taiwan-based provider of DRAM packaging/testing services, plans to acquire common shares in Greatek Electronics, a provider of logic IC packaging/testing services, at NT$25.28 (US$0.83) per share for a stake of 30%-51%, according to a decision made by PTI's board of directors on December 15.

In view of continued stagnant demand for DRAM, PTI is making efforts to reduce packaging/testing of standard DRAM chips and shifting focus to logic ICs. With packaging/testing of logic ICs accounting for only 2% of total revenues, PTI plans to increase the revenue proportion through a strategic alliance with Greatek via the investment, according to PTI president Liao Chung-chi.

PTI plans to undertake in-house packaging/testing of high-end logic ICs and have Greatek responsible for packaging/testing mid-level and low-end logic ICs, Liao indicated. With such an arrangement, PTI expects packaging/testing of DRAM, logic ICs and flash ICs to account for 50%, 20% and 30%, respectively, of its consolidated revenues which include revenues generated by Greatek, Liao noted.

PTI plans to help Greatek hike packaging/testing efficiency and introduce new clients to Greatek, including Toshiba, Liao said.