April 28, 2021
Demand in the semiconductor industry is fierce. Not only is the upstream foundry capacity fully loaded, but also the downstream testing and packaging capacity is in short supply. In addition to canceling the off-season price discount, prices have also increased. Recently, packaging and testing companies have signed capacity guarantee agreements with customers in order to ensure the recovery of the benefits of expansion, which has become a new driving force after price increases.
01 Chaofeng's growth rate is 20%-30%
Memory packaging and testing plant Licheng's packaging and testing plant Chaofeng, this year launched measures to increase packaging quotations for the first time in more than 20 years. In the near future, it will raise the price of packaging and packaging at least 10%, and some of the increase may even increase by 20 %-30%.
Chaofeng confirmed the price increase news on the 26th. The company stated that it will continue to negotiate with customers to adjust quotations from March to May to reflect the sharp increase in raw material prices.
At the end of the first quarter, Chaofeng plans to increase the price of wire-bonding packaging, with an increase of at least 10%. Recently, it has begun to notify customers of price increases, and some orders have increased by 20%-30%, and there will be customer orders in the future. In addition to packaging, some test orders have also begun to increase in price.
Chaofeng said that due to the substantial increase in the price of raw materials, the price increase varies according to individual customers and process applications. In terms of testing business, there will also be different situations based on the needs of the customer's platform. The current demand visibility is maintained until the third quarter. With supply increasing and demand maintained, the goal is to grow quarter by quarter to at least the third quarter. This year, the main expansion is still to focus on the production of wire-bonding and packaging, as well as improving production efficiency and emissions. Cheng.
02Packaging capacity continues to be tight
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% to 20%. %. In the first quarter of this year, prices were raised again, and some products were adjusted by 20%.
Under the leadership of the eldest brother, many second-tier packaging and testing plants have also followed the rise in prices, with an increase of 10%. It is understood that Chaofeng and Lingsheng have successively purchased hundreds of wire bonding machines. The two companies currently own nearly 3,000 and 1,300 machines. Transcend’s investment 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 the rumors.
The legal person said that 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 have been bargained in the past can also raise prices smoothly.
It has been reported from the industry that in the first quarter of this year, various companies raised their packaging prices again, with a maximum increase of 20%, adding room for imagination to this year's performance.
With full capacity and price increases, the tight packaging capacity will continue until at least the second quarter of this year, or even longer. The leading manufacturer, ASE, has cost and technical advantages in AiP (antenna packaging) and SIP (system-in-package), 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.
Semiconductors have recently benefited from a number of trends, including the increase in the content of semiconductors in various devices, the continuous growth of demand for remote interaction related chips, and the significant recovery of the auto market. The overall supply chain operation is mostly seen in the first half of the year, and the packaging and testing industry is also significantly due to the delivery time. Stretching, and orders are coming quickly and urgently, and the expansion is fully launched.
In particular, the overall supply chain has ushered in a rare prosperity in decades. Major customers are also worried about insufficient production capacity, leading to unsatisfactory supply and even affecting subsequent terminal product shipments. Therefore, they signed long-term contracts with various companies and adopted the method of contracting production capacity. , To ensure subsequent shipments.