Memory demand for smartphones remains sluggish, and demand from the data center and server segment is slowing down, pushing up inventory levels at memory chip makers. But midrange smartphone chips from MediaTek are still expected to see significant demand, driving up output for the IC designer's backend service partners. Suppliers of ABF substrates also see strong order visibility, partly thanks to robust orders supporting 5G infrastrucutre construction.
Memory chipmakers see inventory piling up: Memory chipmakers have seen their inventory levels start swelling amid continued weak demand for smartphones, according to industry sources.
Backend houses ramping up output for midrange 5G handset chips: Taiwan-based backend houses and IC test interface solutions providers have started scaling up their output for midrange 5G smartphone chips designed by MediaTek for the China market, according to industry sources.
ABF substrate suppliers see clear order visibility through 2021: ABF substrate suppliers including Unimicron Technology, Nan Ya PCB and Kinsus Interconnect Technology have all seen their order visibility extend into 2021, thanks to continued robust demand for HPC (high performance computing), 5G infrastructure and networking chips solutions, according to industry sources.
