Second-tier IC packaging and testing companies have lowered their quotes by 5-10% on average recently in order to attract more orders from IC design houses who have been switching to copper wirebonding process for their chips, according to industry sources.
MediaTek has switched to copper wirebonding for 60-70% of its products, while MStar Semiconductor, Ralink Technology and Sunplus Technology, and Spreadtrum Communications have 70-80% of their products made using copper-based processes, the sources revealed.
However, first-tier packaging houses Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL) have taken up the majority of orders released by IC vendors leveraging their superiority in copper wirebonding capacities, said the sources.
The high penetration rate of copper wirebonding process at IC design houses in Taiwan and China as well as the dominance enjoyed by ASE and SPIL in the copper wirebonding segment has squeezed the growth potential for second-tier packagers, the sources asserted.
Second-tier packagers Greatek Electronics has recently ramped up its capacity by increasing the number of its copper wirebonders to over 100, while fellow company Lingsen Precision Industries has gradually switched its focus to MEMS products, indicated the sources.
Article translated by Steve Shen
