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On July 21, the Nikkei Asian Review reported that major display manufacturers in mainland China and Taiwan are enteringChip packaging businessto protect itself from the post-pandemic slowdown in consumer electronics demand.

According to a number of people familiar with the matter, Innolux and AUO in Taiwan, as well as mainland panel leaders BOE and Huaxing Optoelectronics, have all set up teams to adjust panel production technology for chip packaging and assembly.Chip packaging requires less technology than manufacturing chips.

The main material suppliers of these panel players, including Corning and Asahi Glass, a major Japanese glass substrate maker, are also investing resources in developing glass carriers for advanced chip packaging, the sources said.

As early as 2017, BOE formed an alliance with Qibang, a major IC packaging and testing manufacturer in Taiwan, China, and purchased part of the equity of Suzhou Qizhong, a subsidiary of the latter. Since then, BOE-related investment funds have also invested in many semiconductor-related companies, including chip production. Materials, equipment and manufacturing areas.

Innolux also began to develop panel-level packaging in 2019, and the company also plans to transform the old 3.5-generation panel production line into a panel-level chip packaging production line. At the same time, people familiar with the matter revealed that AUO is testing the process of panel-level packaging, while CSOT has purchased equipment to study the feasibility of the chip packaging business.

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