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2019

08/26

The mainland and Taiwan will wage a fierce battle in this semiconductor field.

Although the annual growth rate of semiconductor packaging and testing sales in mainland China in 2019 will be significantly reduced from more than 10% in 2018 to single digit, the growth rate of the scale is still higher than that of Taiwan, China. Especially in the future, if the United States really imposes tariffs on the remaining 300 billion US dollars of products in mainland China, it will impose tariffs on the mainland in two waves. The influence of Tiefeng Measurement Plant is limited, mainly due to the low proportion of direct exports to the United States, such as Changdian Science and Technology, Huatian Science and Technology, Tongfu Micro-Electricity and so on, which are in low single digits.

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As for the future competition pattern of semiconductor sealing between the two sides, especially under the US-China trade war, accelerating the establishment of domestic semiconductor supply chain will be the primary goal. Especially, terminal manufacturers in the mainland begin to transfer the supply chain to China, which will really play the role of downstream driving upstream development. The success of the second phase of the National Integrated Circuit Foundation is the best proof that the government continues to support the development of the industry, which is a favorable environment for the future development of semiconductor packaging and testing industry in China.




Moreover, the former mainland semiconductor sealing and testing manufacturers have achieved good industrial competitiveness through epitaxy expansion. For example, the technological strength and sales scale of Changdian has entered the global leading echelon, providing customers at home and abroad with a complete set of semiconductor packaging and testing solutions covering packaging design, solder bumps, pin probe, assembly, testing, distribution and so on. Solution, and because of the successful acquisition of STATS ChipPAC, its competitiveness has been greatly increased. It not only has eight production bases in China, Singapore and Korea, but also has R&D, production and sales network covering the world's major semiconductor market. It also has the only national engineering laboratory and state-level enterprise of high-density integrated circuits in the mainland. Enterprises such as industrial technology centers and post-doctoral research workstations. Secondly, Huatian Science and Technology and Tongfu Microelectronics also occupy a place in the semiconductor sealing industry in China. In the future 5G market, as long-term power technology, Huatian technology, Tongfu micro-power have RF SiP capability suppliers, and mobile phone communication related sealed revenue is higher, so the 5G radio frequency device content will promote the growth momentum of related enterprises.




In terms of Taiwan's output value of semiconductor packaging and testing industry for the whole year of 2019, the annual growth rate will be reduced from 3.35% in 2018 to 0.63%. This is mainly due to trade control or tariff imposition on trade frictions between the United States and China, which will weaken the pulling capacity of downstream terminal electronic products in the first half of the year. Besides, non-tariff trade will also affect the operation of sanctioned companies. In addition to the impact, the supply chain of the global semiconductor industry is more indirectly affected. Because the pre-production period of the feudal industry is one quarter or half a year, the impact of trade war will lead to the fluctuation of customer business without warning, which will affect the accuracy of the capacity construction of the latter feudal factory. Moreover, there are still strong challenges from the main competitor country, China, especially in addition to the continuous low-price single-snatching effect of the middle and low-level feudal industry. Local semiconductor sealing industry has been moving towards higher-order sealing technology for extension.




Therefore, in the short term, Taiwan's semiconductor packaging and testing industry will focus on technological upgrading and seizing business opportunities in the mainland market. In terms of technological upgrading, Sun Moonlight is the most extensive packaging plant with system-level packaging technology, covering nearly 10 packaging technologies, such as FCBGA, FOCoS and 2.5D packaging. The wafers of different processes are isomerically integrated into single crystals. In fact, Taiwan factories will be able to open up the competition gap with mainland semiconductor sealing and testing factories by heterogeneous integration as soon as possible. The demand for heterogeneous integration will mainly come from the system-level packaging of wearable devices, smartphones, 5G, AI, Netcom devices and so on.




In terms of China's market layout, Sun Moonlight Holdings currently has bases in Shanghai, Suzhou, Weihai, Kunshan and Wuxi, as well as high-level cladding and wafer-level process sealing plants in Silicon products such as Suzhou and Shenzhen. It also plans to set up a test center in Nanjing to compete for Chinese integrated circuit designers in TSMC. It is obvious that even in the face of the trade war between the United States and China, the layout of Taiwan Semiconductor Sealing and Testing Plant in the mainland of China has not shown any signs of relaxation or withdrawal in the short term, because China Semiconductor will still play a key role in the global market demand in the future and the local operators on the other side will keep up with it.