The production value of Taiwan's IC packaging and testing industry sector is expected to increase 4-5% in 2018, according to the government-funded Industrial Economics and Knowledge Center (IEK).
Emerging end-market applications such as artificial intelligence (AI) and Internet of Things (IoT) will be driving Taiwan's IC backend sector growth during 2018 despite the decelerating smartphone market. On the supply side, Taiwan-based IC backend houses will still see their prices under downward pressure due to competition from their China-based rivals, IEK indicated.
The production value of Taiwan's IC packaging industry segment is expected to rise 4.5% to NT$348 billion in 2018, while that of the testing sector will increase 4.2% on year to NT$150 billion, IEK said.
Advanced Semiconductor Engineering (ASE) COO Tien Wu remarked recently the company's IC backend business sales will register strong sequential growth in the second quarter and grow through the last quarter of 2018. Brisk chip demand for communications, automotive electronics, memory and high-performance computing will continue to drive ASE's system-in-package (SiP) business revenue growth in 2018, according to Wu.
ASE is working on its merger deal with fellow company Siliconware Precision Industries (SPIL) under which a new parent company called ASE Industrial Holding will be established to own both ASE and SPIL. ASE and SPIL will both be delisted from the Taiwan Stock Exchange and the NASDAQ on April 17, while the new entity will start trading its shares in Taiwan and ADS on the New York Stock Exchange on April 30.