1. The outsourced semiconductor packaging and testing industry is growing rapidly
According to Trend Force research data, in the third quarter of 2021, the revenue rankings of global outsourced semiconductor packaging and testing companies are as follows. Global outsourced semiconductor packaging and testing companies are basically Chinese mainland and Taiwanese companies . Only the second-ranked Amkor is an American company. China and Taiwan have strong capabilities in the fields of semiconductor design, wafer foundry, and packaging and testing. .
ASE is the absolute leader in the outsourced semiconductor packaging and testing industry, especially after acquiring Silicon Products Technology in the past few years. Now ASE and Silicon Products are both subsidiaries of ASE Investment Holdings. Mainland China's Changdian Technology , Tongfu Microelectronics , Huatian Technology also ranked among the top ten in the world, Jiangsu Changdian Technology ranked third.
Semiconductor packaging and testing companies are responsible for packaging and testing at the end of semiconductor manufacturing. In the entire semiconductor industry chain, the technical difficulty and value are relatively low, and the profits cannot be compared with other semiconductor industry chain companies. Of course, advanced packaging processes are also becoming more and more advanced. The more important it is.
Outsourced Semiconductor Assembly and Testing (OSAT, Outsourced Semiconductor Assembly and Testing) accepts outsourcing orders from integrated component manufacturers (IDM, Integrated Device Manufacturer), chip design manufacturers (Fabless), and wafer foundry manufacturers (Foundry).
Many integrated component manufacturers and wafer foundries have their own packaging and testing capabilities, such as Intel , TSMC, etc., which will outsource part of their packaging and testing business mainly for production capacity reasons. Therefore, when the prosperity of the semiconductor industry becomes higher, the demand for outsourced semiconductor packaging and testing will increase .
The global semiconductor industry has grown significantly this year, is expected to exceed 500 billion US dollars throughout the year, but there is still a shortage of cores, such as mobile phones and automobiles. The demand for semiconductors in downstream products has increased even more, but the industry is still in a state of short supply, and the prices of some semiconductor products have even increased several times.
In a prosperous industry environment, outsourced semiconductor packaging and testing companies have also experienced surges in performance, increased profits , and fully enjoyed the growth dividends of the semiconductor industry.
2. Comparison of revenue of various outsourced semiconductor packaging and testing companies
In the third quarter of 2021, ASE’s revenue (only including packaging and testing business revenue, combined silicon product financial report) html was US$13.25 billion, a year-on-year increase of 25.4% , net profit attributable to the parent company was US$1.56 billion, a year-on-year increase of 129.6%. Revenue has surged and maintained a high growth rate, with a clear leading edge. The profit growth rate is much higher than the revenue growth rate, and the profit has increased significantly.
Changdian Technology's revenue was 11.27 billion US dollars, a year-on-year increase of 19.3%, and the net profit attributable to the parent company was 1.12 billion US dollars, a year-on-year increase of 99.4%. Profit also increased significantly, but revenue growth was in the ten Lower in large enterprises.
Tongfu Microelectronics and Huatian Technology have experienced great revenue growth and profit growth, with revenue increasing by nearly 50% and profits doubling .
3. Comparison of gross profit margins of various outsourced semiconductor packaging and testing companies
In the third quarter of 2021, ASE’s gross profit margin 27.4% and net profit margin 17.4% are both at a relatively high level in the industry. Jangdian Technology's gross profit margin is 18.8%, the lowest among the top ten companies, and its net profit margin is 9.8%, which is at the lower level of the top ten companies.
Huatian Technology has a gross profit margin of 25.6% and a net profit margin of 12.8%, which is in the middle of the top ten companies.
4. ASE
ASE’s product application areas are mainly communications, accounting for 51%, mainly mobile phones and communication equipment, computers accounting for 15%, automobiles, consumer electronics and others accounting for 34%.
In terms of products, packaging processes such as Bumping (bumps), Flip Chip ( flip chip ), WLP (wafer level packaging) & SiP (system level packaging) account for 36%, and Wirebonding (wire bonding) Accounting for 39%, Discrete (discrete packaging) and others account for 8%, testing accounts for 15%, and materials account for 2%.
Overall, packaging business accounts for 83%, and testing business accounts for 15% .
