SEMICONDUCTOR packaging and testing provider Stats ChipPac has posted a 26.8 per cent rise in first quarter net profit to US$3.5 million (S$4.3 million).

Revenue for the three months ended March 31 was up 4.1 per cent at US$406.4 million.

Gross margin fell to 15.4 per cent from 16.1 per cent in the same period last year. It chalked up a bigger fall against the previous quarter's 18.3 per cent, mainly due to higher material costs and lower revenue compared to that quarter.

Stats ChipPac president and chief executive Tan Lay Koon said: "The first quarter revenue saw seasonal demand weakness, tight inventory control in the wireless handset, tablet and consumer markets, and continued softness in the personal computer market."

Its advanced packaging revenues climbed by 22.9 per cent to US$199.2 million, due to increased demand in the wireless communications market, particularly smartphones and tablets.

However, weak demand in the personal computers market and consumer, multi-applications and other markets resulted in wirebond packaging revenues falling by 17.6 per cent to US$120.2 million.

Meanwhile, test services revenue rose by 5.9 per cent to US$86.9 million, due to an increase in turnkey test services.

Net asset value per share stood at 46 US cents.

Stats ChipPac shares ended half a cent lower at 43 cents.