ChipMos and Chipbond Raise Outlooks Due to Rising Demand from OLEDs and Notebooks
August 02, 2020
Display driver IC backend suppliers, ChipMos Technologies and Chipbond Technology are ramping-up capacity as in demand OLED driver ICs and TDDI chips increase, due to the higher-than-expected penetration of 5G mobile phone. ChipMos and Chipbond will likely resume full capacity utilization starting mid third-quarter. Display driver IC designers Novatek Microelectronics, FocalTek and Ilitek continue to gain from strong demand for commercial notebooks and tablets, helping ChipMos and Chipbond as well as tape-COF substrate supplier JMC Electronics drive up backend shipments in the months ahead. ChipMos has reportedly tapped into the supply chains of Korea's leading OLED TV brands through vendors of driver ICs. MediaTek, Novatek and Realtek Semiconductor are also expected to continue placing robust orders with ASE Technology and Siliconeware Precision Industries (SPIL) for processing TV SoCs in the third quarter, the sources said. Taiwan's backend houses are likely to gain further momentum for their COF packaging business in 2021 from the growing rollouts of FTDDI chip modules integrating touch control, display and fingerprint ID chips by Novatek, FocalTek and Egis Technology, the sources continued, adding Novatek will start small-volume production of such modules for sample validations in fourth-quarter 2020.