Major shift underway to outsource IC testing
By J. Robert Lineback, Semiconductor Business News
Feb 10, 2000
URL: www.semibiznews.com/story/OEG20000210S0021
TAIPEI, Taiwan--Chip makers are moving faster now to outsource their chip testing.The shift is occurring because manufacturers are looking for more ways to cut capital spending and speed their new product designs to market. Test subcontractors -- many of whom already are operating Asian chip-assembly plants -- are not only handling much higher volumes of production test now, but also are moving rapidly into engineering activities. This kind of thing would have never happened just a few years ago....
...Other major chip-packaging companies also are moving more aggressively into testing services. Amkor Technology Inc., the world's largest contract chip-assembly company, is setting up new test development organizations at its Korean and Philippines packaging plants. Amkor also runs a U.S.-based test product group, which acts as the technical arm of its testing organization, says Miles Prim, vice president of worldwide test who's based in Chandler, Ariz.
Amkor has offered production test for more than a dozen years. According to industry estimates, it is No.2 in subcontract test services with about $80 million in 1999 revenues. While Prim believes that ASE Test is accounts for the largest share of chip-testing services, he maintains
"We have our own wafer fab services, design center, packaging house, test, and drop-ship operations," he points out. "Worldwide, we have over 400 test platforms and occupy nearly 150,000 sq. ft. of manufacturing floor space. We have nearly 2,000 people dedicated to test," Prim claims. "I would challenge anyone to meet that in our marketplace."
But the Amkor vice president, among others, predicts a major shift is coming in the chip assembly and testing business. Semiconductor companies are no longer just interested in cutting costs on maturing products by outsourcing test. Many testing services simply ran ATE equipment for customers on consignment, providing cheap labor. Until now, nearly all engineering decisions were made by chip makers, but that's rapidly changing.. snip..
Jim |
