Three pillars in the global packaging and testing market

China's semiconductor packaging and testing industry as a whole is showing a steady development trend, with a steady increase in market sales revenue. According to data from the China Semiconductor Industry Association, in 2019, China's integrated circuit industry sales were 756.23 billion yuan, a year-on-year increase of 15.8%. Among them, according to statistics from the Packaging Branch of the China Semiconductor Industry Association, the sales revenue of the packaging and testing industry increased from 196.56 billion yuan in 2018 to 206.73 billion yuan, a year-on-year increase of 5.2%.

 

From a global perspective, the market share of China's semiconductor packaging and testing industry is gradually expanding, and the industry's global influence is increasing. Relevant data show that in 2019, China's semiconductor packaging and testing industry accounted for more than 20% of the global market, and the market share has increased significantly. At this stage, the global semiconductor packaging and testing market presents a three-pronged situation, with semiconductor packaging and testing companies from Taiwan, China, and the United States occupying most of the market share.

 

The "warmness" of China's semiconductor packaging and testing market has also caused many companies to make efforts in this field. China's four leading companies in integrated circuit packaging-Changjiang Electronics Technology, Tongfu Microelectronics, Tianshui Huatian and Jingfang Technology continue to deepen their layout in advanced packaging technology, strengthen research and development efforts, and hand in eye-catching answers. According to relevant data, in the ranking of the top ten global packaging and testing companies in terms of revenue in the second quarter of 2020, Changjiang Electronics Technology, Tianshui Huatian and Tongfu Microelectronics ranked fourth, sixth and seventh respectively, with considerable growth in net profit. .

 

As the packaging and testing industry is characterized by high customer stickiness, acquisitions between enterprises can bring long-term and stable business to the company. In recent years, there have been many mergers and acquisitions among global packaging and testing companies, and a new round of reshuffle has taken place in the industry. For example, ASE has acquired the packaging and testing company Silicon Products, and Amkor Technology has achieved full control of the Japanese packaging and testing plant J-Device.

 

The reshuffle of the global packaging and testing industry naturally "spreads" Chinese manufacturers, and Chinese packaging and testing companies have also set off a wave of mergers and acquisitions. The "mergers and acquisitions" among manufacturers can enable Chinese packaging and testing companies to more quickly integrate into the supply chains of international manufacturers, thereby expanding overseas high-quality customer bases and strengthening technology accumulation.

 

In recent years, Changjiang Electronics Technology has acquired Singaporean packaging and testing manufacturer Xingke Jinpeng; Tongfu Microelectronics signed an equity purchase agreement with AMD, and established an integrated circuit packaging and testing joint venture with AMD as the controlling shareholder; Ziguang Group Xianglicheng With a technology investment of approximately US$600 million, it became the largest shareholder of Licheng; Suzhou Goodtech completed the acquisition of 100% of the shares of Malaysian packaging and testing company AICS in two times.

 

At present, China's semiconductor packaging and testing industry is booming. With the help of market demand and related policies, semiconductor production capacity has been released one after another, and the investment heat in the semiconductor packaging and testing industry has also risen. Since 2020, many cities across the country have announced the landing of new packaging and testing projects, and packaging and testing projects have blossomed in many places, involving many fields including third-generation semiconductors, power management chips, 5G, smart storage, and industrial processing servers.