Highlights of the day: Packaging materials in severe shortage


Backend service providers face as much as a 50% shortage of packaging materials from until June as a result of production issues at Japanese suppliers. MediaTek is prioritizing shipments for 5G chips, telling its Chinese handset clients that it is cutting output for 4G offerings amid tight foundry supply. Despite tight foundry capacity, TSMC has promised more support for the car industry. Demand for automotive chip probing services is expected to stay brisk throughout the year.

OSATs face increasingly tight supply of packaging materials: OSATs have been notified by their Japan-based packaging materials suppliers including Showa Denko about a potential supply shortfall of as much as 50% between May and June, according to industry sources.

MediaTek to scale down 4G mobile chip shipments: MediaTek has notified its China-based smartphone clients that it will scale down shipments of 4G chips in 2021 due to tight capacities at foundry houses, according to industry sources.

Automotive chip probing demand to stay robust through end-2021: Wafer probing service providers have seen the visibility of orders for automotive chips extended to the end of 2021, as TSMC has committed capacity support to chip vendors, according to industry sources.