OSAT may raise wire bonding prices again in the first half of next year

Industry sources said OSATs are expected to increase quotes for wire-bond packages again in the first half of 2022 to reflect rising costs of materials such as lead frames and molding compounds due to the deepening shortage.

DIGITIMES quoted sources as saying that many OSATs have raised their wire bonding quotes in the first half of 2021 to cope with the rising prices of packaging materials. Most of them promised not to continue to raise prices in the second half of the year, but would cancel the service fee discounts during the peak season.

However, as Malaysia has imposed a lockdown to prevent the spread of the coronavirus, many local material manufacturers have been reducing production capacity, causing lead frame and molding compound prices to continue to rise in July. Sources said OSATs will have no choice but to increase their quotes and pass on part of the cost increases to customers in the first half of 2022.

According to it, although sales of TVs, laptops and other consumer electronics may be adjusted in the fourth quarter of 2021, OSATs including ASE, Super Microelectronics, Lingsheng Precision and Taiwan Model have all booked their wire bonding packaging capacity for processing various MCUs, PMICs, T-Con chips and USB interface ICs in the first quarter of 2022.

It is reported that most of the above-mentioned OSATs are expanding their wire bonding packaging capacity to meet the growing demand. Many chip manufacturers have also begun to book new capacity that has not yet been opened.