Taiwan's semiconductor supply chain is complete and production efficiency is high. Not only is the 12-inch factory the first choice for international IDM factories, but even the 8-inch and 6-inch factories that have had little or no expansion have recently seen business opportunities for orders.

(Photo by reporter Hong Youfang)

[Reporter Hong Youfang/Report from Hsinchu] The development trend of outsourced manufacturing of IDM in the semiconductor industry is not affected by short-term economic fluctuations and geopolitics.

The industry pointed out that considering cost-effectiveness, international IDM factories continue to look for outsourced production this year. Taiwan’s semiconductor industry has a complete supply chain and high production efficiency. Not only the 12-inch factory is the first choice for IDM factories, but even the 8-inch and 6-inch factories that have little or no expansion. Inch factories have recently seen business opportunities for orders.

Intel, a major IDM manufacturer, revealed last year that the new generation of processors will be commissioned by TSMC for OEM production.

World Advanced, which TSMC transferred to invest in, owns five 8-inch factories, four of which are located in Taiwan. Even though the economic downturn in the first half of this year and geopolitical influences caused local production and manufacturing in Europe and the United States, World Advanced continued to have European, American and Chinese customers come to inquire and transfer orders.

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At the end of last year, a U.S.-based IDM factory customer for power-related ICs signed a long-term foundry agreement with World Advanced. The factory inquired about business opportunities for production outsourcing orders.

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The semiconductor industry pointed out that although the economy is declining, the relative demand for automotive and industrial semiconductors is relatively stable, and even some chips are still out of stock. In-house production, general products with a process of 8 inches or below, due to cost-effectiveness, no-machine expandability and other considerations, including Texas Instruments, ON Semiconductor, Infineon and other IDM factories will still choose to outsource OEM, and gold oxide The power semiconductors related to half field effect transistors (MOSFET), insulated gate bipolar transistors (IGBT), and power management ICs are the most obvious.

ASE also continues to be optimistic about the business opportunities of outsourcing packaging and testing orders from major IDM manufacturers.

ASE pointed out that in the past, IDM factories were full of mountains and seas. From product design to packaging and testing, they provided customers with the convenience of one-time purchase. However, the industry is moving towards professional division of labor. In response to market development trends, large IDM factories no longer invest in building factories all the time. The business strategy is shifting to outsourcing; however, the IDM factory business is not doing well. ASE has been deeply involved in IDM for a long time, and has accumulated a lot of experience in receiving orders, including technology, time, and service. It can be seen and eaten. ASE expects IDM outsourcing packaging and testing business opportunities. There is a lot of room for growth, which will be the driving force for the growth of the group.

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