Market survey: The total revenue of the three major packaging and testing plants in mainland China is expected to increase by 8% in 2020

According to Taiwan media reports, due to the Sino-US trade war and other factors, the total revenue of three Chinese mainland packaging and testing OEM (OSAT) manufacturers including JCET Group Co., Ltd, Tongfu Microelectronics, and Huatian Technology in 2019 was RMB 39.9 billion. , An annual increase of only 4%. However, DIGITIMES Research analyst Chen Zejia predicts that this year, driven by 5G and new infrastructure, the total revenue of the above three companies will grow by 8%.

Although the uncertainty of the COVID-19 epidemic in 2020 and the Sino-US game still exists, but benefited from 5G and other applications and new infrastructure, semiconductor independent policies and other factors, DIGITIMES Research analyst Chen Zejia estimated that the top three major OSAT vendors in mainland China Total revenue will grow by 8%; as for the technical layout, the above manufacturers will focus more on 2.5D/3D packaging technology related to emerging applications such as 5G.

Chen Zejia said that the total revenue of the three major OSAT manufacturers in mainland China will only increase by 4% in 2019. In addition to the impact of major environmental factors such as the Sino-US trade war and the sluggish semiconductor industry, JCET Group Co., Ltd.’s subsidiary Starco Jinpeng The decline in the revenue of the packaging and testing business such as mobile phone chips, memory, and cryptocurrencies also dragged down JCET Group’s annual revenue and became the only reason for the negative growth of the three major manufacturers; while Tongfu Microelectronics and Huatian Technology benefited from the new chips of customers Factors such as listings and mergers and acquisitions have achieved double-digit annual revenue growth.

Although the epidemic and the increase in competition between China and the United States will bring uncertainty to mainland China’s OSAT manufacturers’ revenue in 2020, the short-term demand for epidemic-derived chips and the shipment of 5G mobile phones are gradually increasing. Construction of 550,000 5G base stations, coupled with mainland China's policy of autonomy in semiconductors, DIGITIMES Research expects that the total revenue of these three mainland OSAT vendors will increase by 8% annually in 2020.

In addition, in terms of technical layout, DIGITIMES Research pointed out that IC packaging and testing manufacturers in mainland China have been able to mass-produce system-in-package (SiP), fan-out package (Fan-out), flip-chip package (Flip Chip; FC) and through silicon via ( TSV) and other advanced packaging technologies. However, due to the requirements of 5G and other emerging applications for more diverse functions and higher performance of electronic equipment, the chip needs to be more highly integrated, so the chip is driving toward the development of a three-dimensional packaging structure, and mainland Chinese manufacturers will also follow the trend to step up the layout and target 5G , High-performance computing (HPC), memory, sensors, automotive and other application opportunities.

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