Industry: IC packaging and testing plants are urged to increase production capacity in Southeast Asia

     According to industry sources, IC packaging and testing plants are being urged to increase production capacity in Southeast Asia, especially BGA packaging.

    According to the Taiwan Media Electronic Times, the source said that many international chip suppliers, such as AMD and Intel, are strengthening their supply chain in Taiwan, China, China, while adopting the so-called "Taiwan, China+1" risk control strategy, that is, expanding their manufacturing support sources outside Taiwan, China. In addition to "Taiwan, China+1", international companies are also using the "Chinese Mainland+1" strategy to diversify risks.

     Riyueguang said earlier that some production lines are being built outside Chinese Mainland, such as Vietnam, and related work is ongoing. It is estimated that about 25% of the system level packaging capacity invested and controlled by SunMoon will be transferred outside Chinese Mainland in the future. In addition, customers require to expand production capacity outside Taiwan, China, and Riyueguang continues to expand production capacity in Malaysia, Singapore, South Korea and other places according to customer demand to meet customers‘ elastic demand for traditional packaging capacity in Taiwan, China and outside Taiwan, China.

    Sources pointed out that international chip suppliers are unlikely to rely only on facilities in Taiwan, China and Chinese Mainland. The United States may be refluxing the semiconductor supply chain, but Southeast Asia, which already has a large number of semiconductor packaging and testing facilities, is a more practical option for chip suppliers seeking to diversify their risk. Malaysia and Singapore are both keen to seek investment in chip companies.