Supply chain
China top-3 OSAT firms to see combined revenues rise 8% in 2020, says Digitimes Research
Eric Chen, DIGITIMES Research, Taipei

China's top-3 OSAT providers - Jiangsu Changjiang Electronics Technology (JCET), Huatian Technology and Tongfu Microelectronics - are expected to see their combined revenues increase 8% on year in 2020, mainly bolstered by 5G infrastructure construction, according to Digitimes Research.

Statistics show the three firms raked in total revenues of CNY39.9 billion (US$5.65 billion) in 2019, up only 4% from a year earlier amid the US-China trade rows and lackluster semiconductor sales. Among them, JCET posted a negative revenue growth for the year due mainly to its subsidiary STATS ChipPAC's significant shrinkage in revenues from packaging handset, memory and cryptocurrency mining chips solutions, while Huatian and Tongfu both registered double-digit annual revenue increases thanks to processing new chip products for clients or acquisition gains.

The coronavirus pandemic and intensifying US-China trade tensions have added uncertainties to revenue performance of China's top-3 OSAT players, but their on-year revenue expansion may double to 8% for 2020 on rush chip demand for healthcare and remote work and learning applications, gradual ramp-up in 5G handset shipments, and particularly accelerating 5G infrastructure construction in China and its relentless efforts in pursuing semiconductor self-sufficiency.

In terms of technology deployments, the three firms, already able to handle volume production of SiP, fan-out, FC (flip chip) and TSV (through silicon via) processes, are focusing on developing 2.5D and 3D packaging processes seeking to better benefit from ever-expanding demand for 5G networking, HPC, memory, sensor and automotive chips.

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