Development of IC Packaging and Testing Industry Clusters in China
August 10, 2007 / China Research Team
22 Page, Topical Report
US$1,760 (Single User License)

Abstract

In 2006, China's semiconductor packaging and testing industry shipment value reached 51.2 billion RMB (US$6.8 billion; US$1 = 7.5 RMB). Although this was a 48.4% increase compared to 2005, IC packaging and testing only held a 50.8% share of China's IC industry compared to 74.3% in 2002. In 2007, while NXP, Qimonda, Micron Semiconductor, Kingston Technology, and Samsung have invested in China to construct new production lines or expand capacity, TI was choosing between China and the Philippines and was likely to partner with the Philippines government in the end. Chinese IC packaging and testing service providers have been establishing strategic alliances to improve their technologies and create new business opportunities. This report will analyze the current status of the IC packaging and testing industry in China as well as leading companies' opportunities and challenges.
  •  List of Topics
  •  List of Figures
  •  List of Tables

The Chinese semiconductor packaging and testing industry has benefited from China's lower labor costs and the Chinese government's policies for attracting foreign investment, such as controlling domestic sales quotas with domestic procurement share and foreign exchange controls. With the growth of the global semiconductor market and major international semiconductor companies transferring their packaging and testing operations to China, the Chinese packaging and testing industry's revenue reached 51.2 billion RMB in 2006, a 48.4% increase compared to 2005.

 

Major international semiconductor companies are continuing to transfer their packaging and testing operations to China. The movement is due mainly to the rapid growth of the Chinese IC manufacturing and IC design sectors as well as the fact that China is now the world's largest IC market. Development of specialized packaging and testing companies such as STATS ChipPAC and UTAC in China are attracting the most attention.

However, as labor costs are increasing rapidly in China and with the expected appreciation of the Chinese dollars, the Chinese packaging and testing industry, which is greatly affected by labor costs, will be faced with increased challenges. An example of this can be seen from Texas Instruments, which chose the Philippines over China to build a packaging and testing facility in 2007.

Although major international semiconductor companies are still increasing their investment and production in China's packaging and testing facilities, Chinese makers are cooperating with leading international semiconductor companies to improve their technology capability and to provide low-cost services. In addition to technology support, Chinese makers are also able to secure international semiconductor companies' orders through the alliance.

Appendix

List of Companies

ANST

 

華潤安盛

ASE (Shanghai)

 

 

Changjiang Electronics

 

長電科技

China Resources Microelectronics (Holdings)

 

華潤微電子

Freescale Semiconductor

 

 

Fujitsu Limited Japan

 

 

General Semiconductor (China)

 

 

Giemin Electronics

 

 

Hangzhou Youwang Electronics

 

杭州友旺電子

Hitachi Semiconductor (Suzhou)

 

 

Hua Yue Microelectronics

 

華越微電子

HuaXu Microelectronics

 

 

Huayue IC Packaging

 

 

Hynix-ST Semiconductor

 

 

Hyundai Electronics (Shanghai)

 

 

IBM

 

 

Infineon

 

 

Intel

 

 

Intel Products (Shanghai)

 

 

Intel Technology Development (SH)

 

 

International Rectifier

 

 

Jiangsu Syber Electronic

 

賽博電子

Jiangyin Changdian Advanced Packaging

 

江陰長電先進

Kingston Technology

 

 

Leshan Phoenix Semiconductor

 

 

Leshan Radio

 

 

Lianyungang Huawei Electronic Group

 

連雲港華威

Micron Semiconductor

 

 

Micron Technology

 

 

Motorola

 

 

Nantong Fujitsu Micro

 

南通富士通

Nantong Huada Microelectronics

 

南通華達微電子

National Semiconductor (Suzhou)

 

 

NFME

 

 

Ningbo Kangqiang Electronics

 

寧波康強電子

Nokia

 

 

NXP

 

 

Panasonic

 

 

Payton Technology

 

 

Qimonda (Suzhou)

 

 

Qingdao Hisense Communications

 

青島海信通信

Renesas Technology

 

 

RF Micro Devices

 

 

Sanyo Semiconductor

 

 

SGNEC

 

 

Shanghai Electronics Development Holding Group

 

 

Shanghai Kai Hong Electronics

 

上海凱虹電子

Shanghai Matsushita Semi

 

 

Shanghai Simconix

 

上海新康電子

Shenzhen STS Micro

 

深圳賽意法微電子

SHIC

 

 

Silan Microelectronics

 

士蘭微電子

Siliconware (Suzhou)

 

 

SIMS

 

 

Sino-Microelectronics

 

吉林華微電子

SMIC

 

中芯國際

SMSC

 

 

Stats ChipPAC

 

新科金朋

STMicro

 

 

Suzhou Hanlin

 

 

Suzhou Kinglong

 

 

Tianshui Huatian Microelectronics

 

天水華天微電子

Toshiba Semiconductor

 

 

Unisonic Technologies

 

友順科技

Wuxi China Resources Huajing Microelectronics

 

華潤華晶

Wuxi-KEC Semiconductor

 

無錫開益禧半導體

Xiamen Union Development

 

廈門聯合發展集團

Xiamen Yonghong Electronic

 

廈門永紅電子

Yangzhou Jinglai Electronics

 

揚州晶來電子

Yangzhou JingShi High Technology

 

揚州晶石高科技

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