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January 23, 2021

Capacity is in a hurry! The Q1 quotation of ASE packaging and testing plant is rumored to increase by 20%

The demand created by the new crown pneumonia epidemic continues to be fierce, coupled with the successive launch of 5G mobile phones and game consoles, the semiconductor industry has ushered in a rare and great prosperity, and the sound is constantly rising. Among them, the packaging and testing plant in Taiwan, China, has successfully raised prices in the fourth quarter of last year. Recently, the industry has reported that various companies have raised packaging prices again in the first quarter of this year, with a maximum increase of 20%, which adds imagination to this year's performance. .

Market sources pointed out that ASE purchased thousands of wire bonders urgently last year. At the same time, in order to reflect the strong rise in gold prices and the New Taiwan dollar, in the fourth quarter of last year, the price of customers with monthly revenues of about US$1 million or more increased by 10%~20. %. In the first quarter of this year, prices were raised again, and some products were adjusted by 20%.

Under the leadership of "Big Brother", many second-tier packaging and testing plants have also followed the pace of rising prices, with an increase of 10%. It is understood that Chaofeng and Lingsheng have also successively purchased hundreds of wire bonding machines. The two companies currently own nearly 3,000 and 1,300 machines. Transcend's reinvestment model also purchased 30-40 in December last year. The new machine has entered service in the first quarter of this year. ASE and other packaging and testing plants do not respond to rumors.

According to the industry, this wave of price increases was mainly caused by the first-line packaging and testing plants, and then spread to the second-line plants. The main reason is that the first-line plants use more materials for the production line and are more sensitive to the price of raw materials. With the increase in purchase costs, price adjustments have been quick and urgent, so that second-tier factories that have been difficult to raise prices in the past and even often have been bargained can also raise prices smoothly.

Prior to this, the packaging and testing plant had increased the price of wire frame bonding and packaging in October last year due to insufficient production capacity, and the price of urgent orders and the new unitary law increased by 10%. After November, the production capacity of ball planting and packaging will be full. Out of stock and the price increase, so the price of new orders has increased by about 20%, and the price of urgent orders has increased by more than 20-30%. After mid-to-late November of the previous year, the packaging and testing market has entered the traditional off-season, but last year it seems that the full capacity is not only difficult to ease before Q1 this year, but the tight packaging capacity will continue at least into the second quarter of this year.

ASE COO Wu Tianyu previously stated that the semiconductor supply chain is currently fully loaded with materials such as carrier boards and lead frames. The packaging and testing production lines are also "full and tight", and demand is still pouring in. Even if you want to expand production capacity, you must expand production as a whole. It is expected that the current situation of short supply will continue until the end of the second quarter of this year.

The grand order of the packaging and testing plant has been reflected in last year's performance. ASE's revenue for the first three quarters of 2020 was NT$328.101 billion (the same below), an annual increase of 10.41%, and net profit after tax was NT$17.549 billion. The industry predicts that revenue in the fourth quarter of 2020 is expected to continue to record highs, and for the whole year it is expected to increase by double digits to more than 455 billion yuan, a record high.

In addition, the industry also expects that the tight packaging capacity will continue until at least the second quarter of this year, or even longer. With full capacity and price increases, Taiwan's packaging and testing plants in the first quarter of this year will be off-season. . The leading manufacturer, ASE, has cost and technical advantages in AiP (antenna packaging) and SiP (system in packaging), and is expected to continue to swallow large orders from international customers. This year's revenue and profit will be better than last year and maintain double-digit numbers. Growth momentum.

HOREXS now also have enough ability to produce SIP package substrate,However,in Q1,HOREXS orders also overbook,although order delivery time not affected,However,every day,there's still huge orders waiting for handle for production.In second half of 2021,HOREXS production capacity will get huge enlarge too.Customers dont need to worry about the substrate production time,HOREXS still have space for new customers orders.

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