Global OSAT (outsourced semiconductor assembly and test) companies delivered positive performance in the first quarter as increased demands for semiconductors used for cars and 5G had led to increased demands for packaging process.
According to a market research company called TrendForce on Thursday, first quarter sales of the top ten OSAT companies in the world came out to be $7.17 billion which is an 21.5% increase compared to the first quarter last year.
OSAT companies specialize in packaging process and testing semiconductors before they are shipped. As chips have started to become smaller and more advanced recently, technologies that OSAT companies use have also become important as well. The companies are fiercely competing against each other in order to develop packaging technology that can minimize heating and prevent various interferences at the same time.
Sales of OSAT companies had increased drastically due to development of the automotive semiconductor market and 5G and vitalization of the IT device market since COVID-19.
Growth of ASE and Amkor Technology, which are the top two companies in the industry, in particular have drawn the most attention. ASE, which recorded a market share of 23.5% in the first quarter $1.689 billion in sales, experienced its sales go up by 24.6% compared to the first quarter last year.
Amkor Technology recorded $1.326 billion in sales this first quarter which is an 15% increase compared to the first quarter last year. CEO Giel Rutten of Amkor Technology said that the company was able to attain a positive performance in the first quarter due to strong demands for the company’s major business sectors and that demands from the automotive market and the end user market have started to be recovered to the status before COVID-19.
Performance by Chinese companies are also drawing attention. JCET, TFME, and Huatian experienced their sales drastically jump up in the first quarter. Sales of TFME and Huatian in particular increased by at least 60% compared to the first quarter last year.
“While the tensed relationship between the United States and China is still taking place, demands for OSAT from markets such as automotive chip, memory, parts for 5G devices, and IC for display panels are still strong within China.” said a representative from TrendForce.
The OSAT industry believes that it will be able to maintain this performance in the second quarter as well. While the semiconductor industry is still causing excess demands due to lack of wafers, OSAT companies are expected to see their sales continue to grow in the second quarter as well.
A representative from Amkor Technology said that the company is expected to make $1.34 billion in sales in the first quarter, which will be an 14% increase compared to the second quarter last year, and that strong demands for OSAT are likely to continue throughout the year.
Some believe that OSAT companies’ sales will start to decrease somewhat starting from the third quarter due to excess orders from chip makers in the first half.
TrendForce predicted that reduced purchases from the IT market in the third quarter would have negative impact on OSAT companies’ sales.
Staff Reporter Kang, Hyeryung | kang@etnews.com