IC-packaging market to grow 43% by 2007, but challenges loom for vendors
Semiconductor Business News
(03/14/02 15:12 p.m. EST)
siliconstrategies.com
SAN ANTONIO, Tex. -- The chip-packaging and assembly industry has been hit hard by the current IC downturn, but the market is expected to rebound and grow by 43.3% over a six-year period, according to a new report from Frost & Sullivan here today.
Worldwide sales in the advanced chip-packaging market are expected to grow from $6.61 billion in 2001, to $11.65 billion by 2007, according to Frost & Sullivan.
"Though revenues for ball-grid-array, chip-scale-package, multi-chip-module, quad-flat-pack, and small outline packages were much less compared to 2000, total revenues should recover quickly," according to Frost & Sullivan.
Despite the apparent growth in the market, chip-packaging, assembly and test houses face some challenges. In addition to the downturn, vendors also have to contend with pricing pressures and new industry participants, said analyst Keith Robinson of Frost & Sullivan.
"Heavy price erosion has destroyed several manufacturers' profit margins," he said. "Electronic product manufacturers are trying to reduce the cost of their products by pressuring packaging vendors for lower prices," he said. |
