Supply chain
China IC backend firms poised for strong 2020
Eric Chen, DIGITIMES Research, Taipei

China's top-3 IC backend houses Jiangsu Changjiang Electronics Technology (JCET), Tianshui Huatian Technology and Tongfu Microelectronics (TFME) have seen sales pick up in the second half of 2019, with the growth momentum set to carry into 2020, according to Digitimes Research.

JCET, Huatian and TFME saw their combined sales increase 10.3% sequentially to CNY8.69 billion in the second quarter of 2019, following two quarters of sequential drops, said Digitimes Research.

China's IC backend industry posted a 5.4% on-year increase in revenues for the first half of 2019, with the top-3 players' combined revenues accounting for 16.2%.

With growing demand for China's homegrown chips and for emerging 5G and automotive applications, JCET, TFME and Huatian, along with China's overall IC backend sector, will be gearing up for a strong year ahead, Digitimes Research believes.

JCET remains the technology leader among China's IC backend service providers, with its complete offerings including fan-out WLP, SiP, TSV, flip-chip, bumping, PoP and PiP services. Nevertheless, JCET is facing more competition from some foundry chipmakers, which have stepped into the high-end IC backend segment.

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