SiP substrates adopted for processing core processors and peripheral components for new Apple Watch models reportedly will be all supplied by three Taiwanese makers, Unimicron Technology, Nan Ya Technology and Kinsus Interconnect, according to industry sources.
Apple Watch Series 6 and Apple Watch SE will adopt dual core processors S6 and S5, respectively, and the three makers will provide substrates to support backend SiP process for chips modules at ASE Technology, the sources said.
This will pave the way for the makers to significantly boost their future market shares in the SiP substrate segment now that Apple is on track to massively incorporate SiP technology into more of its devices, the sources continued.
The Taiwanese makers have managed to outrival their Korean peers in winning SiP substrate orders due mainly to their technology and cost control capabilities recognized by Apple as well as the location proximity of downstream backend partners, and partly to Korean makers having to allocate major portions of their capacities to process SiP modules designed by Qualcomm for Korean brand vendors, the sources said.
Besides strong SiP substrate shipment momentum expected for new Apple Watch and AirPods Pro series, the makers are also expected to benefit from Apple's likely move to adopt SiP+flexible PCB to replace rigid-flex boards for battery modules of new iPhones in 2021, the sources continued.
The overall demand for SiP substrates is estimated to pick up by at least 30% in 2021, necessitating capacity expansion for BT-based SiP substrates at the makers, the sources said, adding that both Nan Ya and Kinsus have disclosed plans to slightly expand capacity for SiP substrates in 2021.
Article translated by Willis Ke
