According to the Taiwan Economic Daily, citing industry sources, the semiconductor packaging and testing service provider ASE will cancel the 3% to 5% price discount in the third quarter and will increase the price by 5% to 10%.

The report pointed out that the packaging demand for 5G mobile phone processor chips, communication chips, high-performance computing chips, Internet of Things and data center server chips has exploded, resulting in a full load of ASE's wire-bonding packaging capacity.

According to industry sources, ASE has canceled its quarterly price discounts of 3% to 5% with customers in the third quarter. In addition, ASE will also increase the price of wire-bonding packages by approximately 5% to 10% in the third quarter, in response to rising raw material prices and short supply.

ASE did not comment on the report. However, ASE said that customer demand is strong, especially the demand for wire-bonding and packaging, which is expected to continue throughout this year.