Will the price of packaging and testing orders increase? Huatian Technology: Structural adjustments will be made based on order conditions

Taiwanese media reported that industry insiders revealed that the top three foundries in mainland China (OSAT), Changdian Technology, Tongfu Microelectronics and Huatian Technology, will all benefit from strong packaging demand in the second half of the year, and have increased their quotes for emergency orders for packaging mature chips by 20-30%.

In response to this news, according to the "Science and Technology Innovation Board Daily", Huatian Technology responded that the company has many products and is a full-category packaging and testing company. There is indeed a price increase, but it is not a unified price increase. Instead, it is a structural adjustment based on the cost of the product, the fullness of the order, etc., and the price increase of some individual products may be greater.

It is reported that under the leadership of a mature and stable management team, Huatian Technology has been forging ahead for more than 20 years, from an endangered state-owned enterprise to a listed company, from Tianshui, Gansu to the world, and has now become the third largest packaging and testing plant in China and the sixth largest in the world. The company has five major production bases in Tianshui, Xi'an, Kunshan, Nanjing, and Unisem. Through endogenous and exogenous expansion, it has completed the "low-medium-high" production capacity layout, prudently expanded production, and has strong profitability. From the perspective of product structure, the company's traditional packaging accounts for a significantly higher proportion than its peers. In 2018, the revenue of lead frame products accounted for more than 60%.