* Raises price target on stock to $11 from $5
* Sees Taiwanese sub-contractors driving revenue for co
* Shares up 11 percent
Jan 7 Oppenheimer raised its rating on Kulicke
and Soffa Industries Inc (KLIC.O) to "outperform," saying the
chip equipment maker could see increased revenue growth as its
Taiwanese customers have resumed capacity addition.
Shares of Kulicke and Soffa rose as much as 11 percent in
morning trade on Friday.
Oppenheimer said the firm's Taiwan-based sub-contractors,
Advanced Semiconductor Engineering Inc (ASX.N) and Silicon
Precision Industries Co Ltd (SPIL.O), are seeing
better-than-seasonal volumes, leading to ramped up production.
Kulicke and Soffa should gain from its Taiwanese
sub-contractors resuming their transition to copper wirebonding
from gold in producing chips, resulting in a 20-30 percent
sequential rise in revenue, the brokerage added.
Wirebonding is the process of making interconnections
between an integrated circuit and a printed circuit board
during semiconductor device fabrication.
Kulicke and Soffa manufactures and sells ball bonders and
wire wedge bonders used in Wirebonding.
Oppenheimer said it sees a better-than-seasonal semi-chip
volume for the sub-contractors in the first quarter, mainly
driven by still-lean inventory levels and the continued
outsourcing for fabricating chips.
Shares of the Fort Washington, Pennsylvania-based company,
which have gained 23 percent in volume since posting
better-than-expected quarterly results in November, traded up
11 percent at $8.48 on Friday morning on Nasdaq.
(Reporting by Siddharth Cavale in Bangalore; Editing by