Taiwan-based Advanced Semiconductor Engineering (ASE), viewing that global outsourced production value for wire-bonding packaging of low pin-number ICs, including logic and discrete ICs, will grow at a compound annual growth rate of 19% in 2010-2015, will use in-house-developed technologies to compete for outsourcing orders for such packaging from IDMs by having 10-20% lower costs than IDMs' in-house packaging, according to ASE.

For SO (small outline) packaging, Texas Instruments (TI) has the largest demand valued at US$400 million a year and ASE estimates its 2011 production value at US$300 million. In terms of discrete IC packaging, IDM Toshiba has the largest demand with annual in-house production value reaching US$550 million, while China-based Jiangyin Changdian Advanced Packaging (JCAP) is the largest provider of outsourced packaging services with an annual production value of US$120 million.

Through competing for orders from IDMs, ASE aims to increase its SO production value to thrice TI's and discrete IC packaging production value to three times JCAP's.

Source:digitimes