SAN FRANCISCO -- Fabrinet signed a lease for a building in Israel, where the EMS firm plants to establish an NPI assembly facility.

The site will offer services similar to Fabrinet West, said Seamus Grady, chief executive.

"We're planning to install the full suite of equipment, SMT equipment, optical packaging equipment and very importantly for our customers, full failure analysis capability there. So we'll replicate all these on a smaller scale, the same set of capabilities that we have in Bangkok," Grady said.

Fabrinet has a customer base in Israel, and sees an opportunity to attract new ones. The new site, a former semiconductor manufacturing facility, is equipped with most of the infrastructure the company needs for a new product introduction center.

"We are currently in the process of setting up SMT lines advance packaging and a failure analysis lab similar to what we have to support NPI in our Bangkok facilities. We have hired a general manager for Fabrinet Israel and we are targeting to be up and running early next year," Grady said. "It takes a little bit of time then to when the business grows the business, but ... we would expect to see some revenue from there in the June quarter, maybe a little bit earlier."

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