China Semiconductor Packaging Market Outlook 2012/2013

China Semiconductor Packaging Market Outlook 2012/2013

By Yuri Cai, analyst, Industry Research & Statistics, SEMI China

Packaging and assembly are key segments of the growing semiconductor supply chain in China.  Based on our tracking of 139 companies, and considering numerous small companies not tracked in detail, there are over 200 companies competing in the packaging and assembly market in China. Although many are small companies manufacturing low-pin count devices, all of the world’s “Top 10” OSAT (Outsourced Semiconductor Assembly and Test) players have one or more assembly and testing facilities in China as shown in below table.  Eight of the world top 10 IDM companies have assembly and test manufacturing facilities in China, and most entered into China earlier than the OSAT players, in the mid-1990s.

Table: World Top Ten OSAT Facilities in China

World Top Ten OSAT Facilities in China

In addition to the international companies, domestic subcontractor companies are increasingly joining the global outsourcing market. The assembly of small-size optoelectronic chips like CMOS image sensors (CIS) is the most mature 3D through-silicon via (TSV) platform at the moment and China players occupy an important place through transferring authorized technology from oversea partners.  Also, domestic semiconductor equipment suppliers that previously focused on front-end tool development are applying their products in wafer level package and TSV assembly.

With the growth of semiconductor packaging industry in China, domestic packaging material suppliers are emerging with the industry and are now starting to serve the worldwide leading packaging houses. Given the emphasis on low-cost manufacturing, packaging houses will continue to evaluate China-based suppliers to realize lower material cost.  On the other hand, to enhance their competitive power, stabilize sales and marketing channels, and reduce operational risk, China-headquartered material suppliers are forming partnerships with leading packaging houses. In the “China Semiconductor Packaging Market Outlook 2012/2013” report, we discuss semiconductor packaging material segment market and supply in China, and include both manufacturing facilities owned by foreign companies and domestic companies. 

China Packaging Material Market by Segment

Compared to previous version of the report, the report includes a chapter that covers the background and emergence of the China semiconductor packaging market, the challenges for packaging companies in China, and the impact of government policy on semiconductor industry. For packaging and testing enterprises operating in China, continuous communication with industry-related associations and government departments is necessary to develop more attention and supporting policies to further development of the industry and a healthy supply chain.

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February 5, 2013