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Taiwan packaging and testing houses expect strong demand in June


Friday, June 2, 2006

Taiwan-based packaging and testing houses expect strong sales in June, as demand from the consumer electronics and networking segments pick up, according to industry sources.

Advanced Semiconductor Engineering (ASE), which expects its second-quarter sales to rise 10% sequentially, is seeing strong demand from networking chip designers, and ASE is confident that its June revenues will set a company record, the sources said.

ASE's strong performance during the second quarter has been running against market observers' worries that inventory levels at IC design houses are already high and utilization rates at foundries may decrease in the third quarter, the sources said.

With recent rumors indicating that ASE Singapore, a member of the ASE Group, plans to purchase 200 units of testing equipment, the sources said the orders show that ASE has received major commitment from international clients for long-term orders.

Wafer probing service providers Ardentec and Winstek Semiconductor have seen their capacity fully booked for May and June, the sources said, adding that revenues for each of the two companies for the two months should reach NT$200-300 million (US$6.2-9.3 million) each. Silicon Precision Industries (SPIL), whose sales depend much on the PC sector, saw revenues drop sequentially in May, the sources said. But SPIL's sales should begin picking up in June, the sources remarked.

By: DocMemory
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