IC packaging leadframe and other materials demand is expected to hit bottom in the first quarter of 2023 and start recovering, according to industry sources.
Demand for conventional wirebonding packaging has been slowing down, as inventory adjustments for consumer electronics and other mass-market chips are taking longer than expected, the sources said.
Backend demand for automotive, industrial control and network chips has also started decelerating recently, the sources indicated. OSATs including ASE Technology, Amkor Technology and Jiangsu Changjiang Electronics Technology (JCET) assist fabless customers in storing their "wafer bank" inventories in-house, the sources said.
Despite the near-term inventory correction for many ICs that may persist through the first half of 2023, the overall IC packaging materials demand is promising in the long term, according to sources at epoxy resin and other related materials distributors.
Given the upbeat long-term demand outlook, a Japan-based semiconductor packaging materials company's capacity expansion project for the China market remains on track, the sources noted.
In addition, IC packaging leadframe suppliers continue negotiating with customers higher quotes to reflect rising raw materials costs, according to industry sources. IC packaging leadframe prices have been stable despite the lingering war in Ukraine and other unfavorable macro environments.
Article translated by Jessie Shen
