Taipei, Thursday, April 24, 2014 20:37 (GMT+8)
mostly cloudy
Taipei
22°C
Digitimes Insight: Japan earthquake impact on IC packaging industry
Tony Huang, DIGITIMES Research, Taipei [Tuesday 22 March 2011]

Though several major IC packaging material suppliers have resumed operations at their earthquake-affected plants, there is still growing concern that production will be hampered by the country's damaged infrastructure including transportation systems and electrical grids.

In 2010, only one Japan-based company was among the worldwide top-10 makers of semiconductor packages. However, leading IC packagers, such as Advanced Semiconductor Engineering (ASE), rely much on Japan for production material supplies.

Shin-Etsu Chemical's major factory site for IC packaging materials, which is located in Gunma Prefecture, was shut down following the earthquake. Manufacturing operations at the facility have restored since early last week, but are still being affected by rolling blackouts conducted by Tokyo Electric Power (TEPCO).

In addition to silicon wafer making, Shin-Etsu also produces silicones, synthetic quartz and other semiconductor manufacturing-use chemicals and materials. Its major factory site for wafers in Fukushima prefecture remains closed.

Chemical and material company Nitto Denko has revealed that no material impact from the earthquake were caused to its employees and facilities. The company's main factory site for IC packaging materials is located in Saitama Prefecture, which is in the rolling blackout zone. Nitto issued a statement saying that "it is becoming increasingly difficult to follow the normal production schedule, due to the enforced power restrictions put in place."

Hitachi Chemical has announced that production of epoxy molding compounds for semiconductors and partial production of carbon anode materials for lithium ion batteries would resume in the week of March 22. The company expects production to return to normal by the end of March.

Senju Metal Industry, a leading supplier of BGA solder balls for semiconductor, said it has partially resumed operations at the plants in Tochigi and Iwate prefectures, areas affected by the quake. No major damage to the facilities was found, the company added. "We have adequate raw materials and supplies to continue our production for a while," Senju said in its most recent statement.

Kyocera Chemical, which makes semiconductor materials such as epoxy resin products, said its plants in Fukushima and Yamagata prefectures remain closed due to the earthquake's impact on utility infrastructure. But the affected plants in the eastern region of Japan have mostly recovered from the disaster with production resumed recently.

Global IC packaging production value, 2002-10

Source: Digitimes Research, March 2011

Digitimes Research: Global top-10 IC packagers, 2010 (US$m)

2010 rank

Company

Headquarters

2010 revenues

2009 revenues

Y/Y

1

ASE

Taiwan

3,851.9

2,595.4

48.4%

2

Amkor

US

2,939.0

2,179.1

34.9%

3

SPIL

Taiwan

1,956.3

1,721.4

13.6%

4

STATS ChipPAC

Singapore

1,677.9

1,325.7

26.6%

5

PTI

Taiwan

1,158.9

902.3

28.4%

6

Shinko

Japan

1,058.0

1,138.7

(7.1%)

7

UTAC

Singapore

1,000.0

601.0

66.4%

8

ChipMOS

Taiwan

572.5

367.6

55.7%

9

JCET

China

482.3

346.8

39.7%

10

YTEC

Taiwan

436.2

318.4

31%

Source: Digitimes Research, March 2011

Topics: Page 2

Realtime news
  • Taiflex expects revenues increase in 2Q14

    Bits + chips | 27min ago

  • Acer wins exclusive IT supply contract from Victoria Police, Australia

    IT + CE | 1h 39min ago

  • Acer sets internal target shipments of 10 million smartphones, 10 million tablets for 2014

    Before Going to Press | 4min ago

  • Taiwan thermal module makers expanding heat-pipe capacities

    Before Going to Press | 22min ago

  • Taiflex expects revenues increase in 2Q14

    Before Going to Press | 42min ago

  • Taiwan IC design houses see booming orders from China smartphone vendors

    Before Going to Press | 44min ago

  • China-based white-box tablet vendors face increasing competition from international vendors

    Before Going to Press | 1h 46min ago

  • Lenovo to start dual-brand smartphone marketing

    Before Going to Press | 1h 47min ago

  • Tesla seeing short production capacity, say Taiwan makers

    Before Going to Press | 1h 48min ago

  • Acer wins IT supply contract from Victoria Police, Australia

    Before Going to Press | 1h 51min ago

Pause
 | 
View more

2014 China smartphone market and industry - Forecast and analysis

CHINA SMARTPHONE | Mar 25, 18:27

This Digitimes Research Special Report examines two aspects of the China smartphone market. The first part covers the China smartphone market, measuring local shipments in China from both China-based vendors and international vendors such as Samsung and Apple...

2014 global high brightness LED market, trends and shipment forecast

RESEARCH EXTRAS | Mar 13, 18:26

Digitimes Research estimates that the production value for high brightness LED chips will have an annual growth rate of 12.9% and reach US$12.74 billion in 2014. The applications that will drive growth momentum are LED lighting, tablet, mobile, and automotive...

Taiwan notebooks – 1Q 2014

TAIWAN ICT | Apr 24, 14:24

Seasonality and high inventories at clients undermined Taiwan notebook makers' first-quarter 2014 shipments, which dropped following three consecutive quarters of sequential growths. Their shipments will decline further in the second quarter, as demand remains...

Global tablet market – 4Q 2013

GLOBAL TABLET | Apr 8, 12:22

Global tablet shipments grew 25% sequentially and 29.8% on year to reach 78.45 million units in the fourth quarter of 2013 benefiting mainly by economic recoveries of Europe and North America, which relatively boosted demand during the year-end holidays.

China smartphone AP shipments – 4Q 2013

CHINA SMARTPHONE AP | Apr 8, 12:20

Global smartphone AP suppliers will see their shipments to China grow only 13.5% on year and drop 3.1% on quarter in the first quarter of 2014. The largest supplier MediaTek is seeing its shipments weakening and its LTE products so far still have not yet been...

Global tablet tracker
China touch tracker
2014 global smartphone market forecast