CONNECT WITH US

Power devices makers enhance backend deployments in Southeast Asia

Julian Ho, Taiperi; Willis Ke, DIGITIMES Asia 0

Credit: DIGITIMES

Amid growing geopolitical tensions, Taiwan's power components suppliers are shifting part of their backend orders to OSATs operating in Southeast Asia, amid efforts to diversify supply chain and enhance regionalized operations, according to industry sources.

As the market demand for power devices will sustain growth momentum in the future, suppliers of diodes and MOSFET chips are strengthening their deployments in Southeast Asia to insure future operations, the sources said.

Many OSATs in Southeast Asia are experienced in offering backend services for international IDMs, and can assure good packaging and testing quality for Taiwanese vendors of discrete power devices, the sources continued.

Both business opportunities arising from China's drive of semiconductor self-sufficiency and growing US and European demands for power supply systems and new energy vehicles cannot be neglected. This, coupled with a 'regionalization' trend, can justify the strategy to diversify production bases, the sources stressed.

Some major diode and MOSFET makers such as Panjit International and Eris Technology are expected to conduct in-house packaging of medium and high-end offerings and outsource lower-end products to OSATs including GEM Services, now dedicated to backend services for power semiconductors, the sources said, adding that GEM has seen its capacity utilization falling as its clients in Taiwan and China remain busy with inventory corrections.

Iris Technology is installing new equipment at new production lines for its next-generation diode products, which will enter validations, trial runs and volume production in the second half of 2023, with doubling capacity, the sources said.