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A ramp-up of orders for communications chips, as well as TV panel-use driver ICs and TDDI (touch with display driver) chips, will enable Taiwan-based IC backend firms to enjoy a particularly strong fourth quarter of 2017, according to industry sources.
With Apple introducing its latest iPhone series, the iPhone-related IC backend service providers including Advanced Semiconductor Engineering (ASE), Chipbond Technology, King Yuan Electronics (KYEC) and Lingsen Precision Industries are expected to report brisk sales results starting September, the sources said.
ASE reportedly provides SiP (system-in-package) services for the manufacture of radio-frequency (RF) and Wi-Fi modules for use in the recently-introduced iPhone series, while KYEC is engaged in the supply chain for the new iPhone devices by providing Intel testing services for modem chips. Meanwhile, Chipbond reportedly provides backend services for RF power amplifiers supplied by its Japan-based customer for use in the iPhones, while Lingsen supplies backend services for MEMS sensors used for the devices.
Android phone makers are also gearing up for the rollouts of their flagship models starting the middle of October. China-based Huawei, for example, is set to introduce its Mate 10 series which will feature HiSilicon’s Kirin 970 processor built by Taiwan Semiconductor Manufacturing Company (TSMC) using a 10nm FinFET technology, and backend suppliers include Siliconware Precision Industries (SPIL) and KYEC, the sources indicated.
In addition, with UHD’s penetration of the global LCD TV market set to top 30% in 2017, demand for large-size panel driver ICs is set to boom benefiting related backend suppliers including Chipbond and ChipMOS Technologies, the sources noted.
TDDI is another area that will boost sales performance at Chipbond and ChipMOS in the second half of 2017, the sources said. Chipbond has started ramping up shipments for TDDI chips to Synaptics and FocalTech Systems in the third quarter, while ChipMOS has obtained orders for TDDI chips from Novatek Microelectronics with shipments to kick off in the fourth quarter of 2017.
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