Benefiting from the strong demand for semiconductors, each IDM factory has not only fully loaded its own production capacity, but also expanded outsourcing. Coupled with the effects of the Malaysian epidemic, it has strengthened the cooperation between major IDM manufacturers and packaging and testing plants. KYEC, Silicon Grid, etc. have become major IDM companies. The main partners of the factory in the next few years.

Juheng.com quoted the industry as saying that due to the digital transformation trend, the penetration rate of 5G and WiFi 6 has increased, and the testing process has been greatly lengthened. Since the second half of the year, large IDM manufacturers have insufficient capacity and expanded outsourcing to release orders. The planned production capacity at the beginning of the year is obvious. There is a gap, so capital expenditures are actively increased to meet the needs of the times.

The major testing companies KYEC and Silicon Grid have recently raised their capital expenditures. Not only have the two companies reached more than 10 billion yuan (NTD), they have also reached historical highs, with the increase rates as high as 70% and 80% respectively.

The industry frankly said that due to the good semiconductor market today, orders from major IDM manufacturers have been seen until next year, and in order to obtain a large market share in the early stage of the market outbreak, resources are allocated to the design capacity of the front-end, foundry, packaging and testing in the latter stage It will be handed over to various foundries and packaging and testing companies. As product types increase, the outsourcing share will naturally increase.

In addition, although major IDM manufacturers have their own packaging and testing plants in Malaysia, due to the severe local epidemic, most of them maintain reduced-load production and increase the proportion of outsourcing packaging and testing production to maintain existing product shipments. In addition, automotive chips are available. The feature of long life cycle allows IDM manufacturers to find long-term partners.