Prices for packaging-use epoxy molding compounds (EMC) will rise 10% starting April and supply shortages are expected to persist through the end of 2021 at least, according to Chang Wah Electromaterials, a Taiwan-based distributor of IC packaging materials.
Chang Wah estimated EMC prices may not rise further in 2021 following the imminent hikes despite persistent shortages. The company also stressed it will join forces with Japan's EMC suppliers to meet demand from OSAT clients in Taiwan and China.
Almost all EMC suppliers in Taiwan, China and Southeast Asia have seen their capacity fully utilized, and only vendors in Japan still have some capacity available for clients in Taiwan and China, the sources said.
Japan's vendors may offer priority shipments to Taiwan OSATs including ASE Technology, Siliconware Precision Industries (SPIL) and Greatek Electronics, and their Chinese peers such as JCET and Tongfu Microelectronics through Chang Wah and other distributors, the sources said.
