Out looking 2019, OSAT will become a breakthrough among upstream, mediun-stream and downstream of IC design, wafer foundry and posterior OSAT industry in China.

Only client endorsement makes sense in higher grade chip and advanced packaging industry said by some insiders. Companies such as TSMC, ASE, SPIL cooperate with gaints including Apple, Hisilicon, Qualcomm, NVIDIA and AMD, respectively. Stress arch FOPLP of PTI also supported by companies for example MTK.

However, Chinese OSAT companies, such as TFME, Tianshui Huatian and JCET, have no qualms when they compete for orders like IC design of ELAN and non professor OSAT. According to some insiders, IC wire bonding prices gap of Chinese OSAT in 2019 will keep at 10%, who actively compete for low grade IC OSAT orders.

Various loT device chips come out at the AloT era, such as QFN process and so on which will be domestic emphases. Besides, BGA packaging is also hot for Chinese OAST companies.

TFME fights for CPU orders by FC-BGA packaging together with 12 Fan-out production line and ability of undertaking higher grade GPU OSAT for international companies. Tianshui Huatian SiP fingerprint recognition model has been adopted by Huawei.

JCET strongly encourages SiP packaging in Chinese and Korean factories. In addition, it develops FC-PoP packaging which is fit for mobile application processor. Meanwhile, it has become Chinese largest Fan-in WLCSP packaging base.

International chip makers develops high-performance products, for example, TSMC who is a gaint in wafer foundry. With a cluster effect, TSMC even offers wafer-level extension packaging orders like CoWoS and InFO beside key customers such as Apple and Xilinx. What’s more, posterior OSAT of Qualcomm and NVIDIA is in investment holding of ASE.

It is a fact that Chinese OSAT companies continuesly aim at higher-grade flip chip, additionally, chip for loT device still uses traditional wire bonding packaging, which will be injections of national strategic resources for who experts at OSAT.

Although it is perdicted by insiders that global OSAT companies including Chinese manufacturers will expand scale of domestic chip plants, the production schedule of new chip plants will delay and their capacity will not be as scheduled. Chinese upstream and downstream semiconductor projects, by contract, will keep focusing on IC design and posterior OSAT end.

As client endorsement is most important in OSAT industry, Chinese companies are most outstanding, who use natioanal strategic resources for takeover of international OSAT factories to get all clients orders at the same time. They will be a major competitor to combination of ASE and SPIL in the future.

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