A ramp-up in orders for NAND flash memory will boost revenues at backend houses ChipMOS Technologies and Orient Semiconductor Electronics (OSE) in the second half of 2019, according to industry sources.

ChipMOS will start fulfilling new orders for NAND flash devices placed by memory module makers including Phison Electronics and Adata Technology in the third quarter, the sources indicated. The backend firm is expected to see revenues generated from orders for memory products outperform those from orders for display driver ICs in the third quarter, the sources said.

ChipMOS has also enjoyed a pull-in of orders for entry-level flash devices from Micron Technology's factory site in Singapore, the sources noted.

OSE has seen orders for flash devices including memory cards and SSDs ramp up since the second quarter, when the backend house posted record-high quarterly revenues, the sources said.

OSE is expected to enjoy another quarter of record revenues in the third quarter, driven by a continued ramp-up in demand from customers including Kingston Technology, Phison and Longsys, the sources indicated. The backend firm has seen capacity utilization rates for the flash segment reach 80-90%, with clear order visibility through the fourth quarter, the sources continued.

OSE has also grabbed orders from Adata and will start fulfilling them in the second half of 2019, according to the sources. In addition, both ChipMOS and OSE provide backend services for Macronix' mask ROM products and have therefore cut into the supply chain for Nintendo's Switch console, the sources said.

Both ChipMOS and OSE have declined to comment on the report, citing customer confidentiality.

OSE swung to net profit of NT$226 million (US$7.22 million) in the second quarter of 2019 from loss of NT$44 million a year earlier, while consolidated revenues climbed to a record high of NT$4.55 billion.

By: DocMemory
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