Taiwan backend firms gearing up for robust demand for COF packaging

Film Exhibition:To provide with you the latest industry news】
Taiwan-based backend houses are expected to ramp up production capacity for chip-on-film (COF) packaging in the third quarter of 2019 to satisfy growing demand for smartphone panel chips, according to industry sources.
Oppo and Vivo will be speeding up their pace of orders in the second quarter, said sources at COF packaging service providers, adding that Huawei has already increased its orders boosting capacity utilization rates at related suppliers such as ChipMOS Technologies recently.
ChipMOS and fellow backend company Chipbond Technology have started seeing their COF packaging production utilization rates stay high recently, and may be encouraged to raise their quotes this year to reflect their tight supplies, the sources indicated. Nevertheless, whether an adjustment in their quotes will be made will depend on the outcome of US-China trade talks in March, the sources said.
Both ChipMOS and Chipbond have declined to comment on the report about specific customers and orders, and their prices for COF packaging.
COF packaging is being used for the production of TDDI (touch and display driver integration) chips and OLED panel driver ICs, while the rising popularity of bezel-less smartphones will be buoying demand for TDDI solutions and OLED displays.
ChipMOS has plans to expand production capacity for 12-inch COF packaging and final test manufacturing to 30 million units from 11-15 million in 2018, according to industry sources. ChipMOS with its COF packaging services has reportedly cut into the supply chain of major China-based smartphone vendors.



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