According to industry insiders, the packaging and testing manufacturer ASE Semiconductor has full orders for wire-bonding and packaging. In the third quarter, not only the 3% to 5% price discount will be cancelled, but also 5% to 10% will be increased.

Taiwan Media Economic Daily reported that the 5G version of the iPhone’s processor chips and communication chips, high-performance computing (HPC) chips, and the Internet of Things and data center server chip packaging demand has exploded, causing ASE Investment Control’s wire-bonding packaging capacity to be in short supply.

According to industry insiders, in the third quarter, ASE Investment Control has cancelled the discounts offered during quarterly package price negotiations with customers. In addition to canceling the price discounts of about 3% to 5%, the third quarter will also increase the price of wire-bonding packages. The rate of increase is about 5% to 10%, in response to rising prices of raw materials and short supply of market conditions.

Regarding the price increase in the third quarter, ASE Investment Holdings declined to comment, saying that it will pay close attention to market supply and demand and provide packaging and testing services in accordance with customer needs.

In addition, Zhang Qiansheng, chairman of ASE Investment Control, pointed out that the current packaging and testing production capacity remains at full capacity, especially the demand for wire-bonding packaging is quite strong, and the capacity gap is expected to continue throughout this year.