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UTAC: China testing, packaging industry yet to mature

Posted: 22 Jan 2007 ?? ?Print Version ?Bookmark and Share

Keywords:UTAC? TSMC? UMC? SMIC? Hynix?

Singapore's United Test and Assembly Center (UTAC) said that mainland China's IC testing and packaging industry still lacks market potential despite having Taiwan-based companies transfer their business to the region.

Lee Joon Chung, UTAC president and CEO said the semiconductor industry on the mainland is still immature, thus giving the testing and packaging companies lesser business opportunities. Lee added that China IC makers still lack the technology-edge compared with Taiwan's leading chipmakers, including Taiwan Semiconductor Manufacturing Co. Ltd and United Microelectronics Corp.

Lee further noted that the country's semiconductor sector still has three to five years to reach maturity, and testing and packaging companies must know how to stay in the business until then.

Particularly, back-end production for the IC companies loom with uncertainties. Lee said that Hynix Semiconductor Inc. and Semiconductor Manufacturing International Corp. may further intensify competition by building their own back-end facilities after commencing production at their new 12inch fabs.

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