Backend house ShunSin Technology, a subsidiary of Foxconn Technology (Hon Hai Precision) specializing in system-in-package (SiP) modules, is poised to reap handsome income by rendering packaging services for 400G optical transceiver models in the second half of 2021, according to industry sources.
Factors including improving 5G infrastructure, Intel's newly released Whitley server platform products, and expanding audio/video streaming demand in light of the growing stay-at-home activities will help drive up demand for 400G switch products in the latter half of the year, said the sources.
The firm's plants in Hanoi and Tinh Bac Giant, respectively, in Vietnam, are ready for volume production of optical receiver modules, SiP modules and other products, said the sources, noting that the Hanoi plant will kick off commercial production shortly.
ShunSin counts many US-based companies, including Intel and Facebook, as its major clients, said the sources. Currently, shipments to the US market account for 60-70% of its total sales and those to the China market make up 30%.
ShunSin declined to comment on individual clients or orders.
Company chairman WY Hsu said at the company's latest investors call that he expects the global output of 5G related products to reach US$1.31 trillion in 2020-2035; and the expanding coverage of 5G networks, the rollouts of 5G phones and 5G services will bring explosive growth for PA, SiP and transceiver module products in coming years.
In addition to the booming 400G transceiver module packaging business, ShunSin is also optimistic about its shipments of 5G RF SiP and face ID modules in the second half of 2021, expecting related shipment momentum to stretch to the end of the year.
ShunSin posted revenues of NT$419 million (US$15.08 million) for May, up 0.7% sequentially and 23.9% on year. For January-May, revenues totaled NT$1.908 billion, increasing 10% from a year earlier.