According to Taiwan Media Economic Daily, demand for IC packaging and testing will be strong in the first half of 2021. DIGITIMES Research estimates that Taiwan’s professional outsourcing packaging and testing (OSAT) production value is expected to be a new one, challenging US$20 billion.

Chen Zejia, an analyst at DIGITIMES Research, pointed out that driven by the huge increase in the penetration rate of 5G mobile phones and the strong momentum for IC customers to pull goods, the output value of IC professional outsourcing in Taiwan will exceed 18.5 billion US dollars this year, an increase of more than 15% year-on-year.

Looking forward to next year, Chen Zejia said that the demand for IC packaging and testing will continue to be strong. At the same time, as Taiwan’s major packaging and testing companies such as ASE, Licheng, KYEC, Qibang, and Nanmao plan to expand production or increase their quotations, the output value of OSAT in Taiwan is expected New highs, challenge 20 billion US dollars, an annual increase of nearly 10%.

DIGITIMES Research pointed out that although the COVID-19 epidemic and the Huawei ban affect the OSAT supply and IC packaging and testing needs of Taiwanese manufacturers, the electronic supply chain is actively pulling goods, and 5G and other new electronic products are launched. 5G related chips, panel driver IC (DDIC), memory The rapid recovery of demand for packaging and testing has driven Taiwan’s OSAT output value back to the growth track this year, sweeping away the haze of a 1% decline in output value last year.

Looking forward to next year, the supply chain predicts that IC packaging and testing demand momentum is expected to continue. The visibility of major OSAT orders in Taiwan has reached the first half of this year; at the same time, the vacant production capacity affected by the Huawei ban will also be filled in the first half of next year, and the production capacity of related companies continues In short supply, new capacity expansion has also been booked by customers. Chen Zejia predicts that the output value of OSAT in Taiwan next year is expected to reach a new high.