Development of IC Packaging and Testing Industry Clusters in China

Abstract

In 2006, China' s semiconductor packaging and testing industry shipment value reached 51.2 billion RMB (US$6.8 billion; US$1 = 7.5 RMB). Although this was a 48.4% increase compared to 2005, IC packaging and testing only held a 50.8% share of China' s IC industry compared to 74.3% in 2002. In 2007, while NXP, Qimonda, Micron Semiconductor, Kingston Technology, and Samsung have invested in China to construct new production lines or expand capacity, TI was choosing between China and the Philippines and was likely to partner with the Philippines government in the end. Chinese IC packaging and testing service providers have been establishing strategic alliances to improve their technologies and create new business opportunities. This report will analyze the current status of the IC packaging and testing industry in China as well as leading companies' opportunities and challenges.