Strong demand for PCBs and IC substrates is sending suppliers increasing capacity, which in turn is extending order visibility at equipment suppliers to second-half 2022. And shortage of ABF substrates for notebook processors are expected to widen. Rising foundry costs amid tight supply are expected erode IC designers' profits, as their customers are now relutant to accept further price increases.
ACM Research, a supplier of wafer cleaning technologies for advanced semiconductor devices, has had its Shanghai-based subsidiary start trading on the science and technology innovation board (STAR) of China's Shanghai Stock Exchange (SSE) recently.
Peripheral backend supply chain players including makers of high-end customized IC testing sockets, wafer probe cards and burn-in boards, apart from ABF substrates, are all gearing up for robust demand for HPC chips in 2022, according to industry sources.
Tyntek will invest NT$600 million (US$21.5 million) to expand production capacity for Si-based sensor chips by 30% in 2022, with the revenue proportion for Si-based sensors expected to rise from 55% currently to over 60% in 2022, according to company president Will Chou.
The US Department of Commerce has imposed trade sanctions on a total of 27 foreign companies with 12 of them based in China, 13 in Pakistan, one in Japan and one in Singapore. These Chinese companies were banned because of their alleged support for China's military development and quantum computing projects.
Flash device controller IC specialist Phison Electronics expects demand for PCIe Gen4 storage devices to grow robustly in 2022, thanks to its rising adoption among notebooks.
Samsung Electronics will reportedly increase the production of its Exynos chipsets for Galaxy smartphones to raise the proportion of its in-house processors in Galaxy devices and lower dependence on US chipmaker Qualcomm.
OLED display driver ICs (DDI) supply may fall short of demand in 2022, with the chip shortage likely to disrupt shipments for smartphones, according to industry sources.
To meet surging demand for heterogeneous chips, TSMC is expected to adopt a more agile mode of cooperation with OSATs. TSMC's majr foundry competitor Samsung Electronics has announced plans to build a new fab in the US state of Texas. Samsung is eyeing orders from major US chip vendors. China first-tier lithium battery makers have refrained from raising prices this year, but they are now looking to raise prices by 20% next year.
MCU specialist Nuvoton Technology has expanded its product portfolio to include battery monitoring ICs for next-generation vehicles, and is set to enter volume production of such chips in December 2021, according to industry sources.
Electric vehicles (EV) have been one of the most talked-about topics of 2021. In Taiwan, in addition to Foxconn's MIH Alliance recently surpassing 2,000 members, Powerchip Semiconductor Manufacturing Company (PSMC) chairman Frank Huang began preparations for establishing the Taiwan Advanced Automotive Technology Development Association (TADA) in 2020. TADA reportedly has already received backing from key EV supply chain members Pegatron, AU Optronics (AUO) and the Taiwan Computer Association.
