Changdian Technology: Annual production of 3.6 billion high-density integrated circuits has started small-scale trial production

On May 10, Changdian Technology said on the investor interaction platform that currently, the annual production of 3.6 billion high-density integrated circuits and system-level packaging modules has started small-scale trial production, and the annual production of 10 billion high-density hybrid integrated circuits and module packaging for communications has started production. The overall progress is in line with the company's expectations. The company will adjust the structure and price of some products based on the allocation of production capacity and changes in raw material prices.

It is understood that the above two projects are 5 billion yuan of private placement investment projects of Changdian Technology, which aim to further enhance Changdian Technology's capabilities in SiP, QFN, BGA and other chip finished product manufacturing solutions, better meet the needs of terminal applications such as 5G communication equipment, big data, and automotive electronics, and provide good support for Changdian Technology to expand production capacity and optimize its financial structure.

In recent years, as chip sizes have become smaller and smaller, the number of chip types has increased, and the number of input and output pins has increased significantly, the development of 3D packaging, fan-out packaging (FOWLP/PLP), micro-pitch wire bonding technology, and SiP technologies have become one of the best choices for continuing Moore's Law. The semiconductor packaging and testing industry is also transitioning from traditional packaging and testing to advanced packaging and testing technology, and the proportion of advanced packaging technology in the entire packaging market is gradually increasing.

According to data from market research firm Yole, the global market size of advanced packaging was approximately US$27.6 billion in 2018, accounting for approximately 42.1% of the global packaging market. It is estimated that the global market size of advanced packaging will be approximately US$43.6 billion in 2024, accounting for approximately 49.7%. The CAGR of the global advanced packaging market from 2018 to 2024 is approximately 8%. Compared with the overall packaging market (CAGR=5%) and the traditional packaging market in the same period, the growth of the advanced packaging market is more significant, and will contribute the main growth to the global packaging and testing market.

In addition to the evolution to advanced packaging and testing, the demand for the packaging and testing industry is also rising. Benefiting from the wave of localization of integrated circuits, the implementation of new technologies such as intelligence, 5G, the Internet of Things, and electric vehicles, as well as the "stay-at-home economy" spawned by the epidemic, the demand for electronic terminals such as PCs, servers, and video games has increased significantly. Semiconductor wafers and packaging and testing capacity are in short supply, which has also boosted the operating performance of packaging and testing manufacturers such as Changdian Technology.