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AUSTIN, TX -- A May 1 fire at ASE's Chung-Li, Taiwan facility that destroyed part of the company's assembly and test capacity and decimated its flip-chip substrate production line will heap further pressure on an already tenuous supply of laminate substrates for semiconductor packaging.

Increased demand for laminate substrates this year, coupled with the ASE fire, is expected to push prices higher for wirebond PBGA and flip-chip substrates, says a new report from research firm TechSearch International. Unless capacity is expanded over existing plans, the situation could be similar for 2006, TechSearch said in a press release.
 

A TechSearch poll of key suppliers taken in the month after the Chung-Li fire revealed demand for flip-chip substrates, driven by graphics processors and chipsets, is expected to increase in the second half. With more than 90% of the world's flip-chip substrate capacity expected to be consumed by this demand, price increases are projected.

The report, "Advanced Packaging Update: Market and Technology Trends," found that demand for wirebond PBGA substrates is also expected to exceed supply this year. While capacity is available to produce PBGA substrates in  laminate CSP production lines, companies have not been willing to make the switch due to the low prices lingering from last year. Price increases are also predicted due to the supply shortfall in wirebond laminate substrates.

The report also details trends in microprocessor packaging, including the packaging for the new Cell processor planned for Sony's PlayStation.  There is also a section on the expansion of IC package assembly and test in China, which includes labor rate comparisons over time, and new package developments in coated wire .

For information see the TechSearch 1Q2005 Advanced Packaging Update Report at www.techsearchinc.com; 512-372-8887.

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