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Release time:
2022/05/30
IC design companies revealed that, currently, the capacity for microcontroller (MCU) packaging is in the tightest supply situation. “The minimum order quantity has quintupled from the beginning of the year to recently,” driving MCU packaging prices up by as much as 15% this quarter. Demand for memory packaging is also robust—companies have not only canceled discounts for customers but are also dynamically adjusting prices, boosting the performance of manufacturers such as Nanya Technology, UMC, Nanya, and Powerchip.
NO.1 MCU packaging capacity is tight, with order volumes exceeding five times the usual level.
This season, MCU packaging and testing prices have risen by as much as 15%.
IC design companies revealed that, currently, the capacity for microcontroller (MCU) packaging is in the tightest supply situation. “The minimum order quantity has quintupled from the beginning of the year to recently,” driving MCU packaging prices up by as much as 15% this quarter. Demand for memory packaging is also robust—companies have not only canceled discounts for customers but are also dynamically adjusting prices, boosting the performance of manufacturers such as Nanya Technology, UMC, Nanya, and Powerchip.
Since the third quarter of last year, even with wafer fabrication plants operating at full capacity, they’ve been unable to keep up with the rapid increase in orders. Companies including UMC, VIS, Samsung, and TSMC have all reported multiple rounds of price hikes. As a result, demand for back-end packaging and testing has surged, and packaging and testing prices have also risen due to factors such as rising costs of upstream raw materials. Recently, recurring COVID-19 outbreaks around the world have boosted demand for various end products, including those driven by remote work. Coupled with improvements in automotive chip production capacity and robust demand for chips used in home appliances and healthcare devices, the market has seen a significant surge in demand for MCUs.
Industry insiders analyze that, given the broad application scope of MCUs, the tight supply situation is expected to worsen in the short term compared to the beginning of the year, and MCU package prices are forecast to continue rising in the second half of the year. It is reported that automotive MCUs are among the essential components indispensable in the car manufacturing process, and most of them are produced using wire-bonding packaging technology. Consequently, as the MCU market heats up, wire-bonding packaging is also experiencing robust growth. Regarding the shortage of automotive chips, automakers’ response strategies have shifted from passive measures taken earlier this year—such as shutting down factories, cutting production, or even “stripping non-essential features” from vehicles—to relatively viable and proactive approaches.
Industry insiders revealed that, judging from the overall changes in packaging and testing quotes, MCU-related packaging and testing prices saw the largest increase in Q3—around 15%, with testing costs rising by approximately 15% as well. As for driver IC packaging and testing prices, the increase was in the single-digit percentage range. Demand for memory packaging has also been on the rise. Major memory manufacturers, including Micron and Nanya, have expressed optimism about market conditions. Industry analysts expect that related packaging and testing companies will also benefit from this trend, with both annual revenue and profits poised to reach all-time highs.
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