OSATs including Siliconware Precision Industries (SPIL) and King Yuan Electronics (KYEC) are quietly looking to scale up output at their plants in China to fulfill orders from the local IC design sector, according to industry sources.
SPIL runs a production site in Suzhou, which partly drives parent company ASE Technology (ASEH)'s sales generated from the China market, the sources said. The site serves mainly ASEH's China-based IC design customers, such as Unisoc, the sources indicated.
Orders from ASEH's China-based clients remain normal despite the escalating US-China trade tensions, company CFO Joseph Tung was quoted as saying in previous reports.
While expanding SPIL's Suzhou site in output scale, ASEH is on track to carry out its expansion projects in Taiwan and Malaysia, according to industry sources. The OSAT vendor, which owns Advanced Semiconductor Engineering (ASE) and SPIL, intends to diversify production and enhance supply chain resilience.
ASEH is constructing the phase-two facility of ASE's Chungli plant in northern Taiwan with plans to build a new plant at the Central Taiwan Science Park (CTSP) that will be operated by SPIL. In Malaysia, the phase-four and phase-five facilities of ASE's Penang site are under construction.
KYEC is another Taiwan-based OSAT running a manufacturing site in Suzhou, with the site having over 90% of customers be China-based, the sources said.
KYEC is mulling investing in additional production lines at its Suzhou site for high-end ICs, such as AI and self-driving chips, Taiwan's Central News Agency quoted unspecified Chinese media sources as saying in a report earlier this year.
Article translated by Jessie Shen
