Taiwan-based Chipbond Technology and JMC Electronics have both seen orders for tape COF substrates pick up substantially, reflecting limited capacity supply for such substrates and strong demand for packaging display driver ICs (DDI), according to industry sources.
As COF (chip on film) is now the mainstream process adopted to package both TDDI ICs for midrange and high-tier handsets and large-size DDI chips for TVs and other consumer electronics devices, demand for packaging-use tape substrates has turned significantly strong amid the lingering shortages of diverse display driver chips, the sources said.
Both Samsung Electronics and LG Electronics have decided to defer their exit from TFT-LCD panel production, and are expected to consume the majority of tape COF substrate capacity provided by their respective suppliers Semco and LG Innotek, driving DDI vendors or backend houses to ramp up orders for such substrates with Chipbond and JMC, the sources said.
Chipbond is also engaged in DDI packaging and RF/PA devices testing services, in addition to offering COF substrates for own use and other supply chain players. Its January 2021 revenues surged 17.65% on year to NT$2.126 billion (US$75.93 million).
JMC saw its January revenues surge 42.25% on year to NT$232 million, indicating the company has regained growth momentum after losing orders from Huawei/HiSilicon now still under tough trade sanctions from the US, the source said.-DigiTimes