Report: Taiwan packaging houses expanding bonder capacity

September 21, 2007 – Taiwan-based packaging houses are ramping up orders for wire bonders to meet demand from networking, consumer, and PC segments, according to a Digitimes report citing “industry and company sources.”

Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL) have both been running at full wire-bonding capacity for nearly two quarters, and Lingsen Precision Industries and Greatek Electronics are not far behind, almost at full utilization rates, the report notes.

ASE and SPIL each plan to order 400 wire bonders before year’s end, and Lingsen will add another 100 wire bonders between 4Q and 1Q08, the report notes. Lingsen will increase capital by about $9 million and issue another ~$12M through issuing convertible bonds. Greatek also is looking to add as much as 20% to its 2007 wire bonding capex of ~$30M.

The report notes that SPIL chairman Bough Lin had previously thought global wire bonding capacity would grow by <10% in 3Q, but now says the new capacity should not pose any near-term oversupply concerns.

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