Low demand for consumer IC packaging will continue into the first quarter of 2023

Low demand for consumer IC packaging will continue into the first quarter of 2023

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

According to Chinese Taiwanese media "Electronic Times", 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.

Low demand for consumer IC packaging will continue into the first quarter of 2023

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

It is understood that judging from the current market conditions, the demand for packaging and testing of consumer electronics is weak, and the orders for automotive packaging and testing have increased significantly. Taking ASE, the leader in packaging and testing as an example, the company's CFO said that automotive electronics-related businesses will simultaneously bet on packaging and testing ( ATM), 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.