Taipei, Sunday, November 19, 2017 17:00 (GMT+8)
showers
Taipei
17°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

China AMOLED panel capacity expansion forecast, 2016-2020

RESEARCH EXTRAS | Jun 8, 15:37

This Digitimes Research Special Report examines the China AMOLED industry, focusing on the expansion capacity of the makers, the current implementation plans of major smartphone vendors in the market and the technological hurdles faced by China's makers.

Taiwan server shipment forecast and industry analysis, 2017

TAIWAN MOBILE DEVICE | May 31, 10:20

According to surveys and analyses conducted by Digitimes Research, revenues generated from sales of server motherboards, servers, storage systems and related network system equipment by Taiwan-based vendors rose 4.8% on year to reach NT$555.8 billion (US$18.79...

Global tablet market – 3Q 2017

GLOBAL TABLET | Nov 16, 14:59

According to Digitimes Research statistics, third-quarter 2017 global tablet shipments totaled 42.29 million units, outperforming market expectation. Shipments of both brand and white-box tablets showed obvious on-quarter growth with the shopping season kicking...

Taiwan LCD TVs – 3Q 2017

TAIWAN DISPLAY SYSTEM | Nov 14, 14:08

Shipments to North America saw significant growth in the third quarter of 2017 because of seasonality. Year-end holiday promotions are expected to drive up Taiwan's LCD TV shipments in the fourth quarter.

Taiwan small- to mid-size LCD panels – 3Q 2017

TAIWAN LCD PANEL | Nov 13, 15:36

Taiwan panel makers saw strong orders for 18:9 all-screen smartphone applications in the third quarter, during which their 6G LTPS production capacity also increased.

UMC
Global AP demand forecast, 2017-2020
Global notebook shipment forecast, 2017 and beyond
  • China AMOLED panel capacity expansion forecast, 2016-2020

    This Digitimes Research Special Report examines the China AMOLED industry, focusing on the expansion capacity of the makers, the current implementation plans of major smartphone vendors in the market and the technological hurdles faced by the China makers.

  • Global AP demand forecast, 2017-2020

    Digitimes Research expects global AP shipments to surpass the 1.9 billion mark in 2017, with smartphones remaining the main application. Qualcomm will be leading the market in 2017, as other players continue playing catch up and scramble for funds to invest in more diverse applications.

  • Global notebook shipment forecast, 2017 and beyond

    This Digitimes Special Report examines key factors in the notebook industry, including products, vendors and ODMs, that will affect total shipments in 2017 and through 2021.