Backend house ChipMOS Technologies will expand production capacity for memory chips by 30-40% in 2021 to meet strong demand from major memory module makers in Taiwan, according to industry sources.
ChipMos has been running at full capacity for display driver ICs packaging and even its new capacity has been fully booked soon after becoming operational, the sources said, and its DDI packaging capacity may not be expanded further in the short term.
But the company has purchased large numbers of new memory packaging machines to boost its backend capacity for NAND flash controllers adopted in memory modules from vendors including Adata Technology, Phison Electronics, Team Group and Transcend Information, the sources said.
ChipMos, Orient Semiconductor Electronics (OSE) and Walton Advanced Engineering are expected to see their memory packaging revenues ramp up quarter by quarter in the year, bolstered by robust demand for niche-type DRAM and NOR flash chips apart from NAND controller chips, the sources noted, adding that they have seen clear order visibility for memory packaging through the third or even the fourth quarter.
The sources continued that SSDs and traditional HDDs have been sold out at major retail outlets, mainly due to the emergence of the new cryptocurrency Chia, which requires high-capacity hard drives such as 1TB or more for mining operations. This may enable backend houses and other supply chain players to exploit new business opportunities, the sources added.
