According to a recent report by Market Intelligence & Consulting Institute (MIC), the COVID-19 pandemic may impact integrated device manufacturing (IDM) companies worldwide and their packaging and test capacity in Southeast Asia.
The MIC report pointed out that global IDM companies are mainly located in Europe and the United States. Products include processors, sensing devices, micro-electromechanical devices, radio frequency devices, automotive electronics, power semiconductors and other products. Recently, affected by the pandemic, some manufacturers have reduced the number of employees on the job, which has caused some of the production capacity in Europe to be affected.
According to MIC analysis, under the control policies of governments in various countries, European and American semiconductor companies mainly based on the IDM business model will be greatly affected. In addition, because most of IDM's products are market oligopoly and have exclusive patented technology and high reliability requirements, it is difficult for them to supplement production capacity through outsourcing in the short term.
In addition, MIC pointed out that because most IDM's packaging and test factories are located in Southeast Asia, if the pandemic continues to spread in Southeast Asia, it may further affect the capacity of these packaging and test factories and will have a greater impact on IDM companies.