KUALA LUMPUR (Nov 21): Globetronics Technology Bhd (KL:GTRONIC) has inked an agreement valued at RM145 million to provide integrated circuit (IC) product packaging, testing and backend services to Taiwan-based ChipMOS Technologies Inc.

Under the services agreement, Globetronics is to provide dicing, packaging, and testing services for IC products delivered by ChipMOS, according to the outsourced semiconductor assembly and test (OSAT) outfit’s statement on Thursday.  

The contract is to span three years from Nov 21, 2024, to Nov 20, 2027. The contract’s value of RM145 million is based on a volume forecast provided by ChipMOS, Globetronics notes.

Towards providing the services to ChipMOS, Globetronics said it is expected to allocate an estimated capital expenditure of RM43 million over the remainder of 2024 and 2025.

“The provision of the services is expected to contribute positively to the overall future earnings of the company, which aligns with the company’s business strategy to accelerate future growth for Globetronics,” it added.

Meanwhile, Globetronics also noted the partnership is expected to strengthen both companies’ capabilities in semiconductor backend services, enabling the delivery of high-quality solutions to meet the global market’s growing demands.

ChipMOS is a renowned semiconductor assembly and testing services provider listed on both the Taiwan Stock Exchange and Nasdaq.

Shares in Globetronics ended two sen or 3.77% lower at 51 sen, giving the company a market capitalisation of RM344.45 million.