Chip-on-film (COF) packaging demand for panel-use driver ICs, demand for memory chips including niche-market DRAM and automotive NOR flash, and demand for automotive touch and display driver integration (TDDI) chips will boost revenues at ChipMOS Technologies in 2019, according to SJ Cheng, chairman for the backend company.
Nevertheless, ChipMOS is still cautious about its operations in 2019 given a number of unfavorable macroeconomic conditions, said Cheng. The backend firm expects its capex to be between NT$4 billion (US$129.8 million) and NT$5 billion next year compared with the about NT$5 billion estimated for 2018.
Market sources expect ChipMOS to post an around 10% revenue increase in 2019.
ChipMOS and fellow backend company Chipbond Technology have both seen their COF packaging production capacities run at full utilization, thanks to strong demand for TDDI chips for use in smartphone panels. Both backend firms are likely to raise their quotes to reflect tight supply prior to the Lunar New Year holiday, according to the sources.
Meanwhile, COF tape supplier JMC Electronics, in which ChipMOS holds an about 20% stake, has also enjoyed a ramp-up of orders thanks to its entry into the supply chain of major China-based smartphone vendors including Huawei, Oppo, Vivo and Xiaomi, the sources indicated.
In addition, ChipMOS has cut into the supply chain of the world's first-tier automotive electronics vendors including Bosch and Denso. The backend firm has seen revenues generated from automotive as well as industrial applications grow to account for nearly 10% of its total revenues, the sources noted. The proportion is expected to climb substantially in 2019.
Article translated by Jessie Shen
