Electronics

Weak demand for consumer electronics IC packaging will continue up to Q1,2023: Report

According to the latest report, packaging demand for consumer electronics ICs such as consumer MCUs, MOSFETs, low-end logic ICs, and power management ICs (PMICs) has declined significantly due to sluggish sales of consumer electronics devices and may continue until the end of the first quarter of 2023.

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The sources said that high inflation caused by the Russian-Ukrainian war has weakened consumers’ purchasing power and willingness, and consumer electronics chip suppliers and downstream system manufacturers continue to digest excessive inventory.

“In the second half of the year, the demand for 3C and IT application chip packaging by packaging and testing manufacturers fell more than expected compared with the first half of the year, and those manufacturers with weaker performance in the automotive and industrial applications will experience a more difficult second half.” The source said.

It is understood that judging from the current market conditions, consumer electronics packaging and testing demand is weak, and automotive packaging and testing orders have increased significantly. Taking the leading packaging and testing leader ASE as an example, the company’s CFO Dong Hongsi said that automotive electronics-related businesses will simultaneously bet on packaging and testing.

Electronic foundry service (EMS), it is expected that the automotive chip packaging and testing business will account for more than 7% of the group this year. Industry insiders expect that ASE’s contribution to automotive chip packaging and testing revenue this year is expected to reach a new high of US$1 billion.

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