| Prime News | | ![]() | ![]() | Hu Jintao Reiterates Taiwan Policy of Peaceful Engagement and One-China Principle
Taipei, Oct. 16, 2007 (CENS)--With Taiwan's ruling DPP (Democratic Progressive Party) clamoring to push the UN membership-for-Taiwan movement, Hu Jintao, general secretary of the Chinese Community Party, reiterated the communist party's basic Taiwan-policy line stressing the principles of peaceful engagement and opposition to Taiwanese independence in his keynote speech for the opening ceremony of the 17th Chinese Party Congress yesterday (Oct. 15).
Hu urged Taiwan's ruling party to enter negotiation with the communist party for a peaceful agreement under the "one China" principle, formally ending the cross-Taiwan Strait hostile state, so as to set up a framework for the peaceful development of the cross-Strait relationship.
A total of 2,217 delegates are attending the party congress, held twice a decade, which will set the basic policy line of the party for the next five years.
In the keynote speech, Hu raised again his previous guidelines for the Taiwan policy, including the "three unreserved supports," support for all things favorable to Taiwanese people, cross-Strait peace, and peaceful reunion of the mother nation, as well as the "four Hu's insistences," insistence on the one-China principle, peaceful reunion, pinning hope on Taiwanese people, and opposition to the Taiwanese secessionist movement.
Apparently to avoid an appearance of violent reaction, Hu deliberately shunned the topic concerning the on-going UN membership-for-Taiwan movement, saying only that "the accelerated secessionist movement of Taiwanese independence forces has seriously jeopardized the peaceful development of the cross-Strait relationship."
He also stressed the intolerance to damage on the integrity of the Chinese sovereignty and national land, saying that "any issue related to the integrity of the Chinese sovereignty and national land should be decided by all Chinese people, including Taiwanese."
In response to Hu's statement, the Mainland Affairs Council (MAC) under Taiwan's Executive Yuan (the Cabinet) stressed yesterday that the Taiwan sovereignty issue should be decided by the 23 million people living on the island, adding that compulsory imposition of the "one China" principle on Taiwanese people is the major impediment to the cross-Strait relationship.
MAC noted that despite its conciliatory gesture, the Chinese government has repeatedly put forward additional requests impeding smooth progress of cross-Strait negotiation for bilateral cooperation for business and economic agenda, including visit of Chinese tourists to Taiwan and arrangement of direct cross-Strait chartered flights.
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| | ![]() | | | Tourist Arrivals Will Fall Short of Original Target by 1 M. Next Year
Taipei, Oct. 16, 2007 (CENS)--With opening up of visit by Chinese tourists to Taiwan appearing unlikely in the near future, the Tourism Bureau under the Ministry of Transportation and Communications (MOTC) has revised downward the projected number of foreign tourist arrivals next year to 4 million, 1 million short of the original level, said Lai Se-chen, director general of the Tourism Bureau, yesterday. (Oct. 15).
Lai also admitted failure of the Tourism Bureau in achieving the goal for 3.75 million visitor arrivals this year, as the number for the first nine months reached only 2.7 million.
Lai noted that the original targets, contained in the "five-year plan for doubling tourist arrivals," include the factor of the contribution of Chinese tourists. With its execution starting in 2002, the plan envisions 7% annual growth rate for tourist arrivals, hitting 5 million by 2008, up from 2002's 2.9 million.
The number of tourist arrivals reached 3.52 million in 2006, but grew only 4.9% year-on-year to 2.7 million in the first nine months this year, with one major factor being stagnation in the number of Japanese visitors due to its sluggish economy. As a result, the number of business visitors dropped 2.38% during the period.
Lai admitted that the expected effect of the Olympic Games on the number of tourist arrivals next year may fail to materialize, due to absence of direct cross-Taiwan Strait transportation link, which boosts the costs and time for foreign tourists making a side trip to Taiwan.
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| | ![]() | | | Cathay, Shin Kong Life Insurance Approved to Operate in Beijing
Taipei, Oct. 16, 2007 (CENS)--The China Insurance Regulatory Commission of mainland China has approved Taiwan's Cathay Life Insurance Co. and Shin Kong Life Insurance Co. to set up shop in the capital of Beijing.
It is said that the China Insurance Regulatory Commission has approved an application filed by Shin Kong and mainland's Hainan Airway to set up a 50-50 joint-venture insurance company in Beijing. The operating license for the joint-venture company is expected to be issued next week. With the operating license, the joint-venture company will begin operations at the end of this year the earliest or the beginning of next year at the latest. The joint-venture company will have a registered capital of NT$800 million (US$24.61 million at US$1:NT$32.5).
After integrating the assets of some other airways, Hainan Airway is now planning to list on overseas stock markets, including that in New York of the U.S., London of the United Kingdom, and Hong Kong.
Cathay Financial Holding Co. recently announced that its subsidiary—Cathay Life Insurance has obtained approval from China Insurance Regulatory Commission to set up a branch in Beijing, the fifth of its kind established by the insurer in the mainland and also the first Taiwan-based life insurer to set up a branch in the capital.
In the meantime, Cathay FHC has also announced that the China Insurance Regulatory Commission has also approved Cathay Life Insurance and its affiliate—Cathay Century Insurance Co. to set up a non-life insurance company in the mainland, which will become the first non-life insurance company set up by Taiwan's non-life insurer.
Cathay Life Insurance has already set up branches in Shanghai municipality, Jiangsu, Zhejiang, and Fujian provinces. The company said it scored NT$40 million (US$1.23 million) in earnings from Shanghai operations in the first half of this year.
So far, Taiwan's Investment Commission under the Ministry of Economic Affairs has approved seven domestic insurance companies to set up subsidiaries in the mainland. The seven companies include Fubon Insurance Co., Cathay Century Insurance Co., Mingtai Fire & Marine Insurance Co., Cathay Life Insurance Co., Shin Kong Life Insurance Co., China Life Insurance Co. and Taiwan Life Insurance Co.
An industry insider said Taiwan's insurance market is saturated and a majority of domestic insurance companies have mapped out concrete plans to expand business to the lucrative mainland China marketplace.
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| | ![]() | | | Quanta Lands Contract Orders for NBs From LG
Taipei, Oct. 16, 2007 (CENS)--Quanta Computer Inc., one of Taiwan's leading contract manufacturers of notebook computers, is said to have landed contract orders for 600,000 units of NBs from South Korea's LG Group.
At present, Taiwan's NB manufacturers command over 80% of contract orders for NBs globally. Considering high production costs, some world leading brands like Toshiba and Sony have been expanding the amount of contract orders. For instance, LG of South Korea has begun releasing contract orders for 14.1- and 15.4-inch NBs for the first time, indicating that the second-tier NB manufacturers have to rely on Taiwan's contract manufacturers to escalate their competitiveness.
An industry insider estimated the contract orders landed by Quanta from LG will have bigger profit margin than average.
At present, LG is capable of producing 300,000 up to 400,000 units of NBs per year. But LG has to bear higher production costs in making own-brand NBs than competitors.
Because Taiwan's contract manufacturers of NBs have such advantages as production efficiency and scale of economy, the world's leading brands such as Hewlett Packard Co. and Dell Computer Inc. have almost commission production of the products to Taiwanese contract manufacturers and they have made success in edging out rival brands in market share.
At present, the brands that maintain 100% or partial self-production include Sony, Toshiba, Fujitsu, Matsushita, Sumsung, and LG. But they are losing in sales growth to the brands that fully contract Taiwanese suppliers.
Since the beginning of this year, Toshiba has begun releasing contract orders to such Taiwanese contract manufacturers as Compal Electronic Inc. for low- and medium-tier NBs while keeping self-production for high-tier models.
In the past, LG and Sumsung have had to compete for contract orders with Taiwanese rivals. Being less competitive, these two South Korean brands have stopped contract manufacture business and switched to focus on own-brand products since last year.
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| | ![]() | | | TSMC Acquires Atmel's Used 200-mm Tools
Taipei, Oct. 16, 2007 (CENS)--Taiwan Semiconductor Manufacturing Co. (TSMC) recently took over 200-mm fab tools dismantled from a factory located in North Tyneside of England run by American chipmaker Atmel Corp.
The world's No.1 pure foundry supplier will ship the used chip-making machine, for which it paid US$82 million, to its mainland Chinese factory some time next year.
Some industry watchers analyzed the acquisition is part of TSMC's effort to boost market share in mainland China and gross margin.
TSMC's mainland Chinese factory now has output capacity of 32,000 wafers a month and is projected to turn profitable some time in the fourth quarter. Nevertheless, its share of the mainland's foundry share is around 4.2%, three percentage points behind He Jian Technology's 7.6%. He Jian is a close ally of United Microelectronics Corp.
Low-cost used equipment is expected to help TSMC quickly gain share in the mainland while boosting gross margin.
Some institutional investors have criticized TSMC for its declining gross margin and blamed continuous investments in 300-mm fabs as the culprit behind the margin downshift. They estimated TSMC would likely increase investment in 200-mm tools in a bid to augment gross margin.
The company's gross margin has stayed in the 45-50% range, with its 200-mm fabs contributing 50% while 300-mm fabs contributing only 40%.
Some institutional investors pointed out that the foundry player is aggressively seeking used 200-mm tools worldwide, suggesting its plans to include power management chips and micro electromechanical systems (MEMS) into its foundry service list.
They estimated TSMC's 200-mm fab expansion efforts will very likely drive down prices of United Microelectronics Corp.'s (UMC's) 200-mm wafer foundry service. However, TSMC executives stressed that their company will not compete in price, but in product differentiation to bolster profits.
TSMC's 200-mm fab capacity utilization ratio approached 116% in the third quarter. In spite of seasonal factors, the company's utilization ratio will stay at over 100% throughout the fourth quarter.
Atmel is an integrated device manufacturer (IDM) specializing in Nor Flash memory chips. It announced fab-lite strategy late last year and shortly shuttered two fabs. One of them is the North Tyneside factory. After some modifications, the North Tyneside factory's tools are estimated to be able to turn out 10,000 wafers a month, representing only a marginal 2-3% of TSMC's total output.
In the third quarter alone, TSMC put out 2.16 million 200-mm equivalent wafers, with half of which carrying 0.18-micron chips.
The foundry giant had revenue of NT$29.3 billion (US$889 million at US$1:NT$33) on consolidated basis in September, losing 1.9% from the previous month. However, its consolidated revenue for the third quarter was NT$88.9 billion (US$2.6 billion), standing at the high end of the company's upwardly revised goal. Throughout the first nine months this year, the company had total revenue of NT$228 billion (US$6.9 billion), gaining 5.6% from the same period of last year.
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| | ![]() | | | Mainland China Legitimizes "Black" Handset Production
Taipei, Oct. 16, 2007 (CENS)--Chinese State Council, China's Cabinet, recently canceled the Cabinet-level National Development and Reform Commission's right to review and license applications for production of some specially regulated mobile telecommunications systems and end equipment.
Industry watchers pointed out that the cancellation represents mainland Chinese authorities legitimize cellphone production in the mainland that have yet to be licensed. They said the decision is good for some Taiwanese handsets makers and bad for some others.
The mainland China is now the world's biggest market for unlicensed mobile phones, put at 60 million units by iSuppli for this year. The mainland's handset market is estimated to reach 170 million by the end of this year.
Taiwanese industry watchers pointed out that the cancellation will become a boon for the island's handset-chip suppliers and unlicensed phone makers, but will pose a bane for licensed handset suppliers. So far, licensed Taiwanese handset makers in the mainland include Inventec Appli@nce Corp., BenQ Corp., Quanta Computer Inc., MiTac International Corp. and Dopond International, and unlicensed suppliers include Asustek Computer Inc. and Foxconn Technology Group.
However, executives of Inventec and BenQ stressed the cancellation will help liberalize the mainland's handset market and, thus, become a windfall to strong manufacturers.
MediaTech Inc. is the Taiwanese fabless house to benefit the most from the new policy because its wireless chips have been widely adopted by unlicensed and licensed handset manufacturers in the mainland for their easy designs and multifunction.
Some Taiwanese handset insiders pointed out that the cancellation will become a damper to Taiwanese handset manufacturers working hard to build up brand names in the mainland. Some noted that the mainland authorities have not elaborated on its new guidelines after scrapping licensing system.
Some expected the cancellation will form a new market order in the mainland, with the mainland authorities likely shifting emphasis to raiding substandard products and services from licensing review. They added that the new policy might allow Taiwanese manufacturers to build up brand names through cooperation with mainland Chinese big-name suppliers.
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| | ![]() | | | Global TFT-LCD Production Value to Reach US$100 B. in 2008: DisplaySearch
Taipei, Oct. 16, 2007 (CENS)--The global production value of the flat panel display (FPD) industry is expected to reach US$100 billion this year, and that of thin film transistor-liquid crystal display (TFT-LCD) panel market, which accounts for about 90% of the overall FPD production value, is expected to reach about US$100 billion in 2008, according to DisplaySearch, the worldwide leader in flat panel display (FPD) market research and consulting.
Statistics compiled by DisplaySearch showed that the global FPD production value reached US$24.2 billion in the second quarter, up 15% from the first quarter and up 16% from the same period of last year. Among the second-quarter value, the TFT-LCD sector accounted for 90.1%, or US$21.8 billion (up 18% quarterly or 24% from a year earlier).
The plasma display panel (PDP) production value only accounted for 4.8%, or US$1.2 billion of the second-quarter total, down 14% from previous quarter and down 36% from the same quarter of last year.
The organic light-emit diode (OLED) occupied a 0.5% share, or about US$100 million (up 13% from a year earlier) in the overall FPD production value in the second quarter. DisplaySearch estimated that the OLED production value is expected to outstrip US$700 million this year, and the value is expected to grow to US$1.7 billion in 2008, making it enjoy the highest growth rate among all FPD counterparts.
The market-research firm forecasted that the 2008 PDP production value is expected to maintain the same level as recorded in 2007, as PDP products' sliding prices would offset the shipment growth. That, according to DisplaySearch, is showing a clear sign that TFT-LCD has already owned the mainstay position in FPD market.
The production value of TFT-LCD is expected to grow from US$90.7 billion in 2007 to US$103.9 billion in 2008 at an annual growth rate of 14%, DisplaySearch forecast. So, the firm said that the overall FPD production value is expected to climb to US$115.4 billion in 2008 from US$101.9 billion this year and US$90.9 billion in 2006.
The production value of cathode-ray tube (CRT) displays is expected to drop by 32% this year to US$7.5 billion, and further decline 21% to about US$4 billion in 2008, the research firm said, due to the rapid market shift from CRT to FPD products.
The OLED would be one emerging product category, DisplaySearch said, as some products, such as Sony's latest 11-inch OLED TV model, have been commercialized. Though the latest OLED TV has only an 11-inch screen and in the mid-term such products are not expected to challenge LCD TV's leading position, the research firm said, the development potential of OLED products would be strong.
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| | ![]() | | | LG Orders 800,000 LCD TVs From Taiwan Suppliers
Taipei, Oct. 16, 2007 (CENS)--To further push its sales volume in the North America market, LG of South Korea recently released a big-ticket order for 800,000 LCD TVs to Taiwanese contract producers Qisda Corp. (formerly BenQ Corp.) and TPV Technology Ltd., according to industry sources.
As the supply shortage of thin film transistor-liquid crystal display (TFT-LCD) panels is expected to last into next year, contract system producers with strong support from affiliated panel suppliers, such as Qisda from its affiliated AU Optronics (AUO, the largest TFT-LCD panel manufacturer in Taiwan) and TPV (Chi Mei Optoelectronics Corp., or CMO, the second-largest panel supplier), are expected to boast much stronger competitiveness.
Frank Wang, Morgan Stanley analyst, pointed out that the TFT-LCD industry is in a very favorable business climate seeen to continue into next year. As the industry structure has improved, he added, next year's panel market would be the seller market--in which panel prices in the first-quarter (traditional off season) of 2008 are expected not to drop too much and a strong demand is foreseeable in the second half of next year.
LG announced that its ordered LCD TV from Taiwanese contract suppliers are scheduled to be exported to the North American market in early 2008 under the Zenith brand logo, a sub-brand of LG focusing more on the budget-price market.
Industry insiders said that LG's newly ordered models cover the sizes of 20-, 30-, and 40-inch, including 500,000 units to be supplied by Qisda and 300,000 by TPV.
Amid the panel supply shortage, the sources said that system makers who can access ample panel supplies would boast the strongest advantage over rivals in 2008. They added that Qisda and TPV' affiliated panel suppliers AUO and CMO are expected to be comfortable with their 2008 operations.
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| | ![]() | | | Taiwan's OBU Assets Rise Sharply to US$86.347 B. in August
Taipei, Oct. 16, 2007 (CENS)--The aggregate assets of Taiwan's offshore banking units (OBUs) totaled US$86.347 billion at the end of August, the highest of its kind ever recorded and presenting a sharp growth of US$15.211 billion or 21.38% from the corresponding figure of last year, according to the statistics compiled by the central bank here.
The deposits from non-financial institutions in OBUs witnessed a monthly increase of US$700 million to reach US$25.921 billion in August, and the outstanding foreign-currency loans extended by OBUs rose by US$800 million to US$23.1 billion, both hit record highs of their kinds.
Officials at the central bank indicated that the growing OBU business should be attributed to the improving operating strategies of OBUs among domestic financial institutions and the central bank's recent relaxation on the limitation of OBU businesses as well.
Deposits in financial institutions and interbank dealings were major sources of operating funds for OBUs, which commanded a lion's share of 61% of OBU holdings in August, and the deposits from non-financial institutions, mainly enterprises and investment corporations, accounted for 30%.
Asia was the major source of the deposits in Taiwan's OBUs, taking a share of 68%, which came mainly from Taiwanese enterprises in China. Starting in July the central bank further eased the limitation on the businesses operated by Taiwan's OBUs to allow them to accept both domestic and overseas stocks and real properties or New Taiwan dollar-denominated assets as guaranteed mortgage or collaterals. The new rules are believed to be benefiting many Taiwanese enterprises in China, which have been increasingly using OBUs as channels to maneuver capital on two sides of Taiwan Strait.
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| | ![]() | | | Taiwan's Sovereign Outlook Rated "Negative" for 2008: S&P
Taipei, Oct. 16, 2007 (CENS)--Standard & Poor's (S & P), a U.S.-based rating agency, recently issued "negative" rating for Taiwan's sovereign outlook, one of the only two areas in the Asia-Pacific being evaluated "negative," with the other being Fiji.
S & P indicated that currently the world is quite unstable, and the sovereign outlook in the Asia-Pacific area is relatively stable. Among the 22 economic powers in the area, 15 are regarded as "stable" and five "positive" and only Taiwan and Fuji are rated as "negative."
Chief S & P analysts noted that like their counterparts in other areas in the world, countries in the Asia-Pacific area have recently felt the pressure caused by the world's unstable stock and credit markets. In 2008 the United States and Europe are expected to see slow economic growth, which is believed very likely to influence the economic growth of export-oriented Asian nations, particularly Taiwan, Malaysia, and Thailand.
In 2008, Taiwan is predicted to see continuing delay in economic reform due mainly to the ineffective administration of the government and conflicting political environment. Besides, the unhealthy competition caused by saturated banking will result in unstable financial market on the island.
Moreover, Taiwan's upcoming legislative and presidential elections, slated for next January and March, are also main reasons for the island's political chaos. And the chaos will have little chance for improvement before the said elections, S & P commented.
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| | ![]() | | | Merida Sees Sizable Sales of High-end Bicycles in China
Taipei, Oct. 16, 2007 (CENS)--With successful promotion all around China, Taiwan-based Merida Industry Co., one of the world's leading suppliers of bicycles, has seen its high-end bicycle sales significantly increase in the Chinese market, according to company sources.
Merida posted sales revenue of RMB13 million in September, sharply growing 60% from last year to hit a new high and generating profits of RMB1 million. This was also the first time for Merida to see all its 17 reinvested companies in China turn profitable.
Merida noted that backed by its premium brands and products, the company has posted a 30% growth from a year earlier in sales of its high-end bicycles selling for between RMB1,000 and RMB2,000 so far, since the beginning of this year.
Consequently, Merida's sales of high-end models have exceeded that of general models in China for the first time, increasing to account for 50%, from 30%, of the company's total sales in the market. Besides, the average selling price of its bicycles has risen to RMB700 per unit, up 40% from RMB500.
Merida said that its burgeoning sales in China are attributable to the effect of Beijing 2008 Olympic Games. To explore huge business potential of high-end bicycles in China, Merida has stepped up its construction plan of a large-sized manufacturing plant in northern China, which is scheduled for completion by the Chinese New Year, for installation of production lines in the first quarter of 2008, and for mass production in the second quarter of next year.
The production capacity of the new plant is estimated at 500,000 units of middle- and high-end bicycles initially, and the figure will be boosted to 2 million units in the future, when Merida will take a move to penetrate the Korean and Japanese markets.
Merida recorded a new high of 18,000 bicycles in September sales in China, and will challenge 200,000 units for entire the year, with an expected boom in the market during the fourth quarter of the year.
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| | ![]() | | | Chi Mei Optoelectronics Brings Online LCD Module Plant in China
Taipei, Oct. 16, 2007 (CENS)--Chi Mei Optoelectronics Corp. (CMO), one of leading display panel makers in Taiwan, has officially activated its liquid crystal display (LCD) module factory in Foshan in China's southern province of Guangdong, according to company sources.
The new plant is expected to attain production capacity of more than 200,000 LCD modules per month by the end of this year, and reach annual capacity of over 10 million units in 2008, when its production value will reach US$2.5 billion a year.
CMO noted that its move to build the new LCD module plant in China will prompt related suppliers to form a supply chain in the region, also helping the local makers of cathode ray tube (CRT) TVs to upgrade their production to LCD models.
CMO's new LCD module plant will specialize in making large-sized screens for LCD TVs. The construction costs about US$480 million for CMO, but total investment value would amount to US$2 billion after related suppliers gather to form an integrated supply chain. Thus, this will be the province's largest investment plan led by foreign manufacturers.
In fact, to take advantage of Taiwanese suppliers' competitiveness in producing screens for LCD TVs to upgrade local makers' production, Guangdong's engineers of LCD TV technology have actively worked with CMO and related companies over the past year. They have successfully developed a new LCD module, which features small size and high performance, and allows makers to cut 5% production costs to RMB2000 for use in 26-inch LCD TVs.
At present, CMO's move has driven local suppliers to set up new plants in the same area, with TCL, China's renowned supplier of household electronics, planning to build a new assembling plant in Guangdong. Another large-sized maker already started construction of a manufacturing plant at the end of September, which is expected to turn out one million flat TVs a year and will heavily procure LCD panels made by CMO's new plant.
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| | ![]() | | | 3D Packaging to Become Hottest Technology in Semiconductor Industry
Unable to significantly break through a bottleneck in the technical development of the key photolithography in the 32-nanometer-and-below production process, semiconductor makers worldwide have been eager to seek new alternative solutions in packaging technologies, resulting in a delay of their upgrading the 32-nano and below process.
Recently, at the International Microsystems, Packaging, Assembly and Circuits Technology (IMPACT) Conference 2007, which took place in Taipei from Oct.1 to 3, quite a few attendees reached a consensus that 3D packaging technologies will become the mainstream solutions in the future.
However, the hottest packaging solution at the conference was a 3D through-silicone via (TSV) technology, which has been developed among the world's leading suppliers in the sector, including IBM, Samsung, Taiwan Semiconductor Manufacturing Co., Ltd. and Advanced Semiconductor Engineering Inc.
In fact, large suppliers of photolithography devices, ASML and Belgium's Interuniversity Microelectronics Centre have collectively succeeded in developing a machine using extreme ultraviolet (EUV) to turn out 12-inch wafers through the 32-nano process.
Nevertheless, many semiconductor makers in Taiwan still prefer using the existing immersion devices to produce 32-nano chips while continuing to improve production processes, and at the same time keep looking for better solutions, instead of resorting to the EUV-based device. It is because the EUV-based device is exceedingly expensive, which also goes for investing in the 32-nano and below process, which costs usually three to four folds more than the 90-nano process.
Moore's Law
Perhaps the primary motivation driving the global makers of semiconductors to upgrade their packaging technologies is "Moore's Law," which was introduced by one of Intel's founders, Moore Gordon, in 1965 and says that the number of chips embedded on an integrated circuit (IC) would double every two years, hence improving IC performance but lowering their prices every two years. So a fleeting two-year period has become the magic time span clocking rapid advancement in high-tech products, as well as obliging suppliers in the sector to upgrade production technology over the same brief period.
In recent years, many top-selling mobile phones feature low prices and multi-functionality, making system-on-a-chip applications popular. The world's leading IC makers, such as Qualcomm International Inc. and Texas Instruments Inc., have already moved to use 65- or 45-nano processes to produce chips incorporating all the functions for a handset, as well as considering to adopt 3D packaging technologies.
As IBM and Samsung have succeeded in applying the 3D TSV technologies in manufacturing ICs or high-capacity memories at low cost this year, it means that 3D packaging technologies have become mature, and are regarded as the most important element to sustain the industry in the next five years.
Insiders noted that the 3D TSV technology is able to reduce the power consumption of a processor by 20% relative to others, enabling chip makers to stack passive components, memory, logic ICs and analog ICs into a single chip, which cuts the time spent on chip design.
Besides, 3D TSV also allows suppliers to interconnect a central processing unit (CPU) with SARM at speedy bandwidths. Thus, a CPU processed through 3D TSV needs not be embedded with flash memory, which usually occupies a large area in a CPU, enabling the production of more compact items.
New Demands for 3D Packaging
Generally speaking, 3D packaging technologies were born in 2000, when some packaging companies and integrated device manufacturers started applying related techniques in production, but did not become popular because makers of semiconductors concentrated on developing system-on-a-chip technologies at the time.
Nevertheless, as demands for Bluetooth chips, wireless local area network (WLAN) chips, radio on chips (RoCs), baseband chips and complementary metal oxide semiconductor (CMOS) image sensors have exploded over the past two years, the issue of the relevance of 3D packaging technologies has again become center-stage, especially for globally well-known chip makers such as Qualcomm, Broadcom Corporation, Intel and Advanced Micro Devices Inc (AMD).
Having won big orders from the aforementioned chipmakers, Taiwan's Advanced Semiconductor, Siliconware Precision Industries Co. Ltd. and Kinsus Interconnect Technology Corp., who all have been engaged in developing 3D packaging technologies for more than 5 years, are poised to become the biggest winners in the race to build alternative solutions of new packaging approaches.
For instance, Advanced Semiconductor and its reinvested company Universal Scientific Industry Co., Ltd. applies 3D packaging technologies in developing and mass producing mini WLAN modules, which have reportedly been adopted by Apple in its iPod Touch.
Meanwhile, Siliconware and Advanced Semiconductor have won orders from big enterprises in the sector for packaging NAND memory cards, Bluetooth modules and CMOS image sensor modules. Also, Kinsus, Taiwan's largest supplier of substrates made of bismaleimide triazine (BT), which are packaging substrates mainly used by packaging companies, has reaped bountiful profits from the availability of new packaging technologies.
The market for consumer electronics like mobile phones and portable devices grows rapidly, so has the demand for new packaging technologies in the semiconductor making industry. An annual compound growth rate in the semiconductor packaging industry is expected to go up to 16%.
In addition, 3D packaging is already well-developed and able to create economy-of-scale in production quickly, providing packaging companies a chance to outpace wafer suppliers, according to Goldman Sachs.
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