International Chip Suppliers Boost Production in Southeast Asia for IC Testing and Packaging

According to industry insiders, IC testing and packaging factories are being urged to increase production capacity in Southeast Asia, especially in BGA packaging.

According to Taiwan's Electronic Times, many international chip suppliers, such as AMD and Intel, are strengthening their supply chains in Taiwan, while adopting a "Taiwan+1" risk control strategy, which expands their manufacturing support sources outside of Taiwan. In addition to "Taiwan+1", there are also international companies using the "Mainland China+1" strategy to diversify risk.

Earlier, ASE Technology Holding announced that some production lines are being built outside of mainland China, such as in Vietnam, and related work is ongoing. It is estimated that about 25% of ASE's system-level packaging capacity will be transferred to locations outside of mainland China in the future. Additionally, some customers are requesting increased production capacity outside of Taiwan, and ASE is continuing to expand its capacity in Malaysia, Singapore, South Korea, and other locations according to customer demand, in order to meet both traditional packaging demand in Taiwan and the flexibility needs outside of Taiwan.

Insiders point out that international chip suppliers are unlikely to rely solely on facilities in Taiwan and mainland China. The United States may be reshoring its semiconductor supply chain, but for chip suppliers seeking to diversify risk, Southeast Asia, which already has a large number of semiconductor packaging and testing facilities, is a more practical choice. Both Malaysia and Singapore are eager to attract investments from chip companies.