Taiwan's industry supply chain remains competitive in the advanced chip market, which is expected to be undersupplied over the next three to five years, according to Tien Wu, COO for OSAT ASE Technology Holding (ASEH).
Taiwan's supply chain is expected to benefit from the fact that US-based AI, high-performance computing (HPC), and high-end application processor (AP) chips are all using sub-7nm process nodes, which will help drive long-term demand, Wu said.
Additionally, even though US-based IDMs do not necessarily outsource backend processes, as long as frontend chip manufacturing capacity increases globally, Wu noted that backend vendors will still see rigid demand.
Leading wafer foundries responsible for rigid frontend demand can be regarded as important customers of ASEH, noting that the correlation between them is more of partners than of competitors.
Industry sources pointed out that during the pandemic Wu was the main proponent for expanding ASEH's packaging and testing capacities. As a result, when the semiconductor industry was faced with supply shortages and price increases, ASEH was able to seize backend opportunities.
In the short term, Wu noted that inventory corrections in the electronics and semiconductor industries will continue to fluctuate; however, he believes ASEH will continue to experience growth in the long term.
Article translated by Eifeh Strom
