Taiwan-based foundries including Vanguard International Semiconductor (VIS), Episil Technologies and Mosel Vitelic will continue to enjoy brisk demand for power discrete semiconductors in 2019, thanks to a ramp-up of orders from their IDM clients, according to industry sources.
The Taiwan-based foundries, which have cut into the supply chain of international IDMs for conventional MOSFET and IGBT components and modules, are set to benefit from a ramp-up of orders from their IDM clients in 2019, said the sources. These IDMs have put increased focus on the manufacture of higher voltage solutions for automotive and industrial application, and have stepped up outsourcing of mass-market solutions.
Meanwhile, Taiwan-based backend houses including GEM Services and Lingsen Precision Industries are also expected to be among the beneficiaries of the outsourcing trend from IDMs, the sources continued.
VIS, which operates three 8-inch wafer fabs, disclosed previously that the company will expand production capacity in 2019 to satisfy growing demand for power management ICs, MOSFETs and panel-use driver ICs.
GEM Services, which obtains backend orders for power semiconductors from international IDMs and Taiwan-based MOSFET suppliers, is expected to post another double-digit revenue growth in 2019, according to market watchers.
The outlook for automotive CMOS image sensor (CIS) demand also looks promising. While expressing its optimism about the power discrete market in 2019, On Semiconductor has also given its upbeat outlook for the automotive CIS market this year.
Taiwan-based suppliers involved in the supply chain of On Semi for automotive CIS include Kingpak Technology and King Yuan Electronics (KYEC), according to industry sources.
Article translated by Jessie Shen
