According to Taiwan media sources, due to the explosion of orders for wire and packaging, coupled with the shortage of supply and the rising price of raw materials, in addition to planning to cancel the 3% to 5% price discount in the third quarter, ASE, a major packaging and testing manufacturer, will also Another 5% to 10% price increase...

According to the Economic Daily, benefiting from the packaging needs of processor chips and communication chips in 5G iPhone mobile phones, high-performance computing (HPC) chips, as well as IoT and data center server chips, ASE, a major packaging and testing company, controls the production capacity of wire-bonding packaging. Fully loaded and in short supply.

According to industry sources, in view of the above reasons, ASE Investment Control has notified customers to cancel the price discount of about 3% to 5% when negotiating packaging prices every quarter since Q3; The major packaging and testing manufacturers will also increase the price of wire-bonding packaging from Q3, by about 5% to 10%.

ASE declined to comment on whether the price will increase in the third quarter, saying that it will pay close attention to the market supply and demand situation and provide packaging and testing services according to customer needs.

It is understood that the company notified customers in December last year that the price of packaging and testing will be increased by 5% to 10% from the first quarter of this year, and some high-end packaging and testing services will increase by as much as 30%.

Zhang Qiansheng, chairman of ASE Investment Holdings, also pointed out recently that the current packaging and testing capacity is maintained at full capacity, especially the demand for wire-bonding packaging is quite strong, and the capacity gap is expected to continue throughout this year. The tightness of the wiring equipment will continue until the end of this year.

It is worth noting that the packaging and testing giant continues to make capital investments in wire bonding, flip chip, wafer level packaging (WLP), bumping and test equipment. It is reported that ASE Investment Control has increased the number of wire-bonding and packaging machines this year, which will increase from the estimated 1,800 in the fourth quarter of last year to 2,000 or even 3,000.