In addition to placing increased orders this quarter with Taiwan testing and packaging firms for backend DDR services,

Hynix Semiconductor has now placed similar orders for approximately 3-6 million DDR2 chips per month, starting from the first quarter of 2005, according to market sources.

The three major testing and packaging firms involved are Powertech Technology Inc. (PTI), ThaiLin Semiconductor and United Test and Assembly Center (UTAC), the sources added.

Hynix was unavailable for comment at the time of publication.

The three testing and packaging houses will split the DDR2 ordering amount evenly, with each company landing orders for 1-2 million chips per month at the initial stage of volume production, the sources explained. Industry observers estimate that the amount should escalate to 10 million chips per company as Hynix plans to outsource about one-third of its backend DDR2 production orders to these players.

Hynix has already placed orders for limited amounts this quarter, as the three major partnering testing houses gain validation from Hynix. UTAC CEO JC Lee confirmed that the company has already received validation for its window ball grid array (WBGA) tested and packaged DDR2 chips from Hynix.

In September, Hynix reportedly placed orders with Taiwan testing and packaging houses for 90 million 256Mbit equivalent DDR chips per month for the fourth quarter, with UTAC being the main beneficiary.

Although overall DRAM testing capacity is still tight, the transition to DDR2 should release pressure on DDR testing prices in the first quarter of 2006 and UTAC will offer price reductions for selected customers, Lee indicated

By: DocMemory
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