ChipMOS Technologies Inc (“ì–Î), the worldfs second-largest LCD driver IC packaging and testing service provider, yesterday said that its capacity utilization rate has surged to 90 percent on the back of better-than-expected smartphone demand.

Customers are benefiting from a recovery in demand for small displays used in smartphones, as most handset vendors have completed new designs by adding extra features, such as slim-barrel screens, or OLED displays, to match the design of Apple Incfs new iPhone series, the company said.

Those new features are propelling demand for packaging and testing, especially its advanced technology services, ChipMOS said.

gWe have seen unexpected spikes in demand in the past two to three weeks,h company spokesman S.K. Chen (’šæN) said. gProspects for driver ICs used in large displays [for TVs] and small displays [for phones] both look good in the second half.h

Utilization rates for its driver IC packaging and testing services reached 87 percent last quarter, ChipMOS said.

ChipMOSf customers include Samsung Electronics Co and local driver IC suppliers such as Novatek Microelectronics Corp (—ü‰r), Himax Technologies Inc (ŠïŒiŒõ“d) and Raydium Semiconductor Corp (“C‰È‹Z).

The rosy outlook for small displays used in handsets was also reflected in the surge in demand for ChipMOSf bumping services, with the utilization rate jumping to 80 percent from 63 percent last quarter, Chen said.

Driver ICs, which account for more than 20 percent of ChipMOSf revenue of NT$4.54 billion (US$150 million) last quarter, is to play a crucial role in cushioning the blow from its major client Micron Technology Inc.

Micron has been reducing orders for ChipMOSf memory chip packaging services since the fourth quarter last year.

Order reductions from manufacturers of memory chips and microelectronic mechanical systems (MEMS) might undermine growth in the driver IC business and bring down ChipMOSf revenue slightly this quarter, or remain unchanged at best, the company said.

Factory utilization at ChipMOS Technologies (Shanghai) Ltd (ãŠCG–Î), a Chinese joint venture 45 percent owned by ChipMOS, has reached 50 percent, the company said.

The Chinese venture is ramping up new driver IC capacities this quarter to meet demand from local clients, it said.

By: DocMemory
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