Leadframe supplier Chang Wah Technology (CWTC) remains optimistic about demand from the IC backend sector in 2022, despite market concerns about recent corrections in OSATs' capacity utilization rates.
CWTC chairman Canon Huang said OSATs have completed 10-20% capacity expansions so far this year, and their overall capacity will rise further in 2022, with their capacity utilization likely to be slightly affected as demand for backend services will remain unchanged.
But Huang expects demand for leadframes to trend upward in 2022, as leadframes are cheaper than IC substrates driving OSATs to adopt leadframe-based packaging process for new IC applications in 2022, especially now that IC substrates continue to see severe shortage.
This will drive up CWTC's leadframe shipments next year, Huang said, reiterating that the company will enter a robust development stage in the next five years.
Huang also noted that Japan's Sumitomo Group, now dominating over 40% of the global market for molding compounds, is set to increase its annual production of the packaging material by 600 tons in 2022 to meet robust demand from OSATs. CWTC's parent Chang Wash Electromaterials now serve as Sumitomo's distribution agent.
Article translated by Willis Ke
