Foxconn is stepping up its effort in the semiconductor industry and began installing equipment for packaging high-end ICs at plants in China, while Chromebook shipments will experience a major drop, due to weakening demand from the end market. Seeing demand for memory products is still rising, Macronix is planning to expand its 12-inch fab by investing NT$41.5 billion.
The supply chain makers of Chromebooks reportedly have experienced a significant cutback of orders from their brand clients due to the dwindling demand for notebook products in the end market, according to industry sources.
IC substrate maker Kinsus Interconnect Technology saw its net profits for second-quarter 2021 shoot up 202% on year to NT$1.01 billion (US$36.1 million), thanks to substantial improvements in production yield rates and efficiency in arranging production schedules, according to company statistics.
Foxconn Technology (Hon Hai Precision Industry) has started installing equipment including lithography systems for high-end IC packaging at its chip plant in Qingdao, northeast China, according to industry sources.
The plant is set to kick off trial production in October, and will focus on packaging and testing 5G, AI and other HPC chips, with full-scale production slated for 2025 at the latest, the sources said.
Following its move to set up a 5nm chips fabrication plant in the US and expand foundry capacity in China, TSMC has recently confirmed its intentions to build fabs in Japan and Germany to better serve its clients in the countries. The aggressive overseas production deployments, however, have sparked market doubts that the foundry giant may face tremendous cost pressure and can hardly break free from the world's main powers in the short term.
The output value of Taiwan's compound semiconductor industry grew 26.4% on year to NT$36 billion (US$1.28 billion) in the first half of 2021, according to statistics compiled by the Photonics Industry & Technology Development Association (PIDA).
Compal Electronics and its networking device-making subsidiary Arcadyan Technology are both expanding their factory sites in Vietnam where COVID-19 infections are resurging, and they have claimed no impact thus far from the local pandemic.
Sales of smartphones in India in the second quarter in 2021 declined by 13% on quarter as the country battles through resurgences of COVID-19. Sales were still up on year; online stores were rapidly installed after the pandemic hit last year. As vaccines rolled out at the end of the second quarter, Chinese vendors turn more optimistic about sales in the coming months.
SEMICON Taiwan 2021 has announced that starting from September, five online technology forums will be held as a prelude to its physical exhibition, which has been rescheduled to December. A spike in COVID-19 infections locally in Taiwan prompted the organization to postpone its physical event.
TSMC is evaluating the feasibility of building more fabs overseas fabs, including Germany, according to the foundry house's chairman. Strong demand and tight capacity are sending foundry quotes rising. UMC is mulling raising service fees further by 10-15% in first-quarter 2022 for 40nm process. MIH CEO Jack Cheng believes the Foxconn-led open platofrm for EV development is revolutionzing the car industry.
Intel CEO Pat Gelsinger, at an online investors conference, has pointed out that he expects PC total available market (TAM) to grow all the way to 2022, despite the pandemic being gradually contained, corresponding to the views of several executives at Taiwanese ODMs, according to some market observers.
Taiwan's automotive PCB makers are expected to significantly ramp up their shipments in the second half of the year as car chip shortages are improving along with a notable surge in capacity support from TSMC and other peer foundry houses, according to industry sources.
Taiwan-based leading PCB maker Zhen Ding Technology and Austria's AT&S are set to enter the high-end ABF substrate segment where demand will stay robust through 2025, both making bold investment plans with solid support from major clients, according to industry sources.
COVID-19 has prompted many people to rethink life and work, and many industries to accelerate their development. Vehicle electrification has been picking up pace, and the car industry and smart mobility have entered a new era promising better, faster and more efficient development.
First-tier automotive IC IDMs in the US, Japan and Europe have reportedly approached OSATs including ASE Technology, Powertech Technology (PTI) and Greatek Electronics to book backend capacity for 2022, according to industry sources.
Luxshare Precision Industry and Goertek, reportedly assemblers for the new-generation AirPods, have seen their factory sites in Vietnam affected by a resurgence of the COVID-19 outbreak locally and will have to fulfill orders for Apple's upcoming TWS earbuds at their plants in China, according to industry sources.
OSATs are expected to raise their quotes again for wire-bonding packaging services in the first half of 2022 to reflect ever-rising costs for materials such as leadframes and molding compounds as shortages worsen, according to industry sources.
India's largest car parts supplier Motherson Sumi Systems is riding the wave of automobile electrification. Placed 89th in DIGITIMES' Asia Supply Chain 100, Motherson Sumi might be able to reach its revenue goal of US$36 billion by 2025, despite the worldwide shortage of semiconductors and rising copper price.
Foxconn Electronics (Hon Hai), Foxtron Vehicle Technologies and Japan-based motor maker Nidec are in talks for establishing a Taiwan-based joint venture to develop, produce and market motor-based powertrains for use in electric vehicles (EVs) and automotive electromechanical products, according to Foxconn.
In light of the global semiconductor demand surges and chip companies looking to avoid the risks from the trade war and supply chain storage, the India government has recently provided new incentives to global semiconductor companies to set up fabs in the country, after a similar move failed a decade ago. But most of the global leading semiconductor companies still stay unresponsive due mainly to a lack of a complete ecosystem in South Asia.
Backend houses have seen their delivery lead times for MCUs, audio ICs, USB interface ICs and power management chips extend all the way to as long as two months from the previous two weeks, due to persistently tight wire-bonding capacity supply, according to market sources.
Apple has stepped up its chip purchases for the upcoming iPhones, while first-tier automotive component vendors in the supply chains of carmakers in Japan are also vying for more available ICs, according to industry sources.
Acer and Asustek Computer are both expected to see their notebook sales register another increase of about 10% in 2022, while some ODMs have also expressed optimism about the overall notebook sales judging from the one-year supply agreements brand companies have already struck with them, according to industry sources.