On November 20, the semiconductor packaging and testing service provider ASE Semiconductor informed its customers that due to rising costs such as IC carrier prices and strong demand from customers, the production capacity is in short supply and will increase the average price of the first quarter of 2021 by 5-10%.

According to industry source, several packaging and testing service providers have increased their prices by 10% in October due to insufficient production capacity. After entering November, due to insufficient production capacity of some packaging lines and shortage of IC carriers, new orders have increased in price by about 20%-30%.

In fact, every year after late November is the off-season for the packaging and testing industry, but this year it seems that the situation is completely different. From the current point of view, the situation of insufficient production capacity is difficult to alleviate before the end of the year, and the tight packaging capacity will continue at least until the second quarter of next year. According to industry analysts, the entire packaging and testing industry in the first quarter of next year may increase prices by 5-10%.

Industry insiders pointed out that the rising demand for personal computers, game consoles, automotive electronics and 5G mobile phones will continue for at least the entire year of 2021 Therefore, the shortage of semiconductor packaging capacity is expected to continue at least until the middle of next year.