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As the automotive-use chip sector is emerging as a new niche market with great development potential, Taiwan IC packaging and testing service providers are gearing up to scramble for orders from major international IDMs supplying automotive chips, according to industry sources.
The source said international IDMs are increasingly seeking support from OSAT (outsourced semiconductor assembly and test) players for packaging and testing ICs for automotive applications such as sensors, MCU and MEMS (micro electro mechanical system), as the automotive chip market is expected to remain lucrative and sustain significant growth momentum in the next 10 years. This is expected to lead to the quantitative and qualitative changes of the IC packaging and testing sector.
The sources said Taiwan’s leading IC packager Advance Semiconductor Engineering (ASE) is actively seeking to win more orders from IDMs for packaging automotive chips, though the automotive electronics sector contributes only 5% of its total revenues currently. The company has decided to expand the backend services at its WLCSP (wafer level chip scale packaging) plant in Singapore to cover more automotive-use chipsets.
International IDMs such as Infineon Technologies, NXP Semiconductors, Texas Instruments (TI), Renesas and more have all zeroed in on the automotive electronics sector for strategic developments, and many Taiwan IC packagers and testers are trying hard to build business ties with them. Among them, Kingpak Technology and King Yuan Electronics has won orders from OmniVision and On-Semi for packaging CMOS sensor chips. Meanwhile, Ardentec, Etrend Hightech and GEM Services are also stepping up efforts to capture orders from IDMS in US, Europe and Japan, where autonomous cars and new energy vehicles are under rapid development, according the sources.
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