Chip Packaging Firms Run Facilities To Nearly Full Capacity
Friday, June 04, 2004
By Kim Kyu-tae
Attributing to brisk semiconductor market, operation ratio of production lines at chip packaging companies reaches almost 100%. Firms that package advanced chips, in particular, are sometimes unable to satisfy demands.
As full operation of chip packaging facilities indicates rising demand for semiconductor products, packaging firms including Chippac Korea, Amkor Technology Korea, ASE Korea and Nepes are bracing for soaring demand by beefing up production lines and improving productivity.
With operation of its processing lines reaching a full capacity earlier than expected, Chippac Korea ( chippac.co.kr) plans to expedite expansion of its facilities to meet growing demand. "Since demand for packaging has risen in the second quarter significantly compared to that in preceding two quarters, the company is devising a way of beefing up packaging capacity," said Kim Pil-ju, executive director at Chippac Korea.
Driven by an increase in demand by 25%, Amkor Technology Korea ( amkor.co.kr) is running its facilities to nearly a full capacity. "The company is operating processing lines around the clock, and is toiling to augment productivity instead of expanding equipment," said a manager at Amkor Korea.
ASE Korea ( asekr.com) is experiencing a shortage in packaging chips for mobile phones including camera phones. "We are running packaging equipment by more than 90% in general, and yet we cannot satisfy all demands for packaging chips for mobile handsets. To meet surging demand, we plan to install additional equipment," said Kim Song-un, executive director of the company. "Shortage in supply of packaging service, however, is expected to be prolonged since it takes considerably long period of time to procure equipment due to its insufficiency," added Kim.
Though it beefed up production capacity by more than three times over that at the end of last year, Nepes can hardly meet demands. "Shortage in supply is anticipated to continue for the time being," said Baek Seung-dae, executive director at Nepes.
"Full operation of chip packaging facilities in Asia-Pacific region is particularly conspicuous, indicating soaring demand for chips for digital consumer electronics gadgets in the region. It is also a 'green light' for continued boom of semiconductors in this region, said Kim Chang-su, executive director at Gartner Korea, a market survey firm.
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