August 25, 2023 /SemiMedia/ -- According to industry insiders, OSAT (Outsourced Semiconductor Assembly and Testing) companies in mainland China are lowering prices to win more orders.
The utilization rate of mature wire-bonding and mid-to-high-end flip-chip packaging processes in chip packaging has not yet changed significantly, but OSAT companies in mainland China can provide more substantial price cuts by taking advantage of government subsidies, sources said.
While the semiconductor assembly and testing industry is showing signs of rebounding, the recovery has not been as rapid as previously expected, leading OSATs elsewhere to adopt cost containment measures that have been in place since the semiconductor industry's recession began in 2022.
The industry insider also pointed out that ASE Technology and Amkor Technology currently have no plans to cut prices.
