SINGAPORE Seasonal demand has caught the subcontractor community by surprise, causing worldwide shortages of chip-scale packages (CSPs) and PBGA products, warned a vendor in the industry.
Reports have also surfaced that there are growing shortages and price hikes for chip-packaging materials, such as lead frames and substrates. The move has prompted some subcontractors to pass on the costs and raise their prices for select packages.
Chip-packaging utilization continues to rise in the industry amid growing demand, which started in the third quarter or so of 2005, said Scott Jewler, chief strategy officer and vice president of sales for Europe and Asia at Singapore’s STATS ChipPAC Ltd.
“Capacity is tight for certain products,” Jewler said in an interview at the company’s headquarters here. “I think that caught people by surprise.”
Worldwide shortages of PBGA packages are the most surprising phenomena, he said. PBGA packages are used for PC and graphics applications. “That technology is mature,” he said.
Given the demand for stacked-die products in handsets and other products, it’s no surprise that CSPs are in short supply.
Demand and possible shortages for chip-packaging services are expected to last at least until the first quarter of 2006, according to industry sources.
On the other hand, some believe that visibility remains low. “It’s anybody’s guess,” Jewler said.