Reports say that automotive MCU and MPU back-end demand remains strong

On August 19, according to DIGITIMES, supply chain sources said that the back-end demand for automotive MCUs and MPUs is still in a stage of rapid development, and both OSAT and packaging material suppliers can see clear orders before the end of this year.

Sources said that leading OSAT companies including ASE Technology Co., Ltd. have won automotive MCU back-end outsourcing orders from international IDM companies for the next two quarters, helping to support the shipment momentum of lead frames required for the mainstream QFP process for such chips.

Sources said that Taiwan's back-end partners began negotiating 2023 orders with IDMs in the United States, Japan and Europe from the third quarter of 2022 and found that these IDM manufacturers became cautious about their business prospects in the second half of 2023.

Sources pointed out that automotive chip IDMs are expected to slightly reduce orders for outsourced back-end businesses in the second half of 2023, but it remains to be seen whether the demand for automotive MCUs and MPUs will reverse in the second half of next year.