According to the latest data from China Semiconductor Industry Association, the sales of China's packaging and testing industry reached 40.25 billion yuan in the first quarter of 2018, up 19.6% year-on-year. DIGITIMES predicts that China's mainland integration in 2018 The output value of circuit packaging and testing is expected to exceed 30 billion US dollars, reaching 33.3 billion US dollars (about 213.286 billion yuan), an increase of 19.20%.
Domestic packaging industry is closest to world class
Recently, Dr. Yu Daquan, CTO of Huatian Technology Electronics Group, said that as the three pillars of domestic integrated circuits (chip design, manufacturing, packaging) industry, the "Nuggets Semiconductor Series Telephone Conference 2" held by CITIC Jiantou Electronics Team First, the domestic packaging industry and the world-class level are the closest, and the technological gap between foreign giants is only three to five years. It is expected that the gap with the international market will be further narrowed by 2020.
In the past ten years, domestic packaging companies have developed rapidly. In 2017, among the top ten global packaging and testing companies, there are three domestic companies, which are ranked third in the long-term technology, ranking first. Six Tianshui Huatian and the seventh ranked Tongfu Microelectronics. According to TrendForce's Tuoba Industrial Research Institute, the three major domestic packaging and testing plants in the first half of this year will account for the proportion of the world's top ten packaging and testing plants. Reached 26.9%.
Yu Daquan believes that although domestic packaging companies are developing very rapidly, there are still some shortcomings. At present, domestic packaging companies have large gaps in production capacity, advanced packaging technology and management with world-class companies. Further strengthen R&D investment, expand production capacity, improve management and introduce more talents.
Huatian Technology's first quarter net profit fell 28.98%
Previously, Huatian Technology announced the first quarter of 2018 financial report that in the first quarter of 2018, Huatian Technology's operating income was 1.928 billion yuan, an increase of 29.76%; and net profit was 81 million yuan, down 28.98%.
In this regard, Yu Daquan said that there are three main reasons for the decline in Huatian Technology's net profit: First, the impact of the decline in the bitcoin market; Second, Huatian invested more in advanced technology research and development, which led to an increase in depreciation; The upgrading of the packaging industry and the increasing number of factories have increased the company's labor cost.
In answering the question of when net profit can be further recovered, Yu Daquan said that after the capacity of advanced packaging is further released, we can see whether our research and development investment can quickly enter the market, such as fan-out wafer level packaging (Fo -WLP), when the output of optical fingerprinting and Bumping can get up, profits will rise. In fact, Huatian Technology has been performing well in China for a long time, and occasional decline may be directly related to R&D investment.
Kunshan Company is the largest part of Huatian Capital’s expenses
Huatian Kunshan Company is not only an important part of Huatian Technology, but also the 'locomotive' of domestic advanced packaging technology. In recent years, Kunshan has diversified its layout in advanced packaging and testing capacity, from the past for image sensor packaging. The single WLCSP-TSV business began to gradually expand other advanced wafer level packaging and testing capacity. Currently, the company is deploying 12-inch CIS, Bumping, and fingerprint identification packaging and other advanced production capacity.
Yu Daquan said that Kunshan Company may be the largest part of Huatian Technology's capital expenditure. In the research and development of advanced technology, the investment is large and the cycle is long. 'The traditional sensor packaging market profit has been declining, and it has achieved very good in vehicle and security. Good progress. Thick and thin, it is expected that there will be better profit performance in the second half of this year or the first half of next year.
It is worth mentioning that Kunshan has developed wafer-level optical fingerprint packaging technology. Yu Daquan said that the technology is currently being verified by customers, and the effect is not bad. Huatian will pay more attention to the industrialization of optical fingerprints. I hope to work with the customer to make the market work.
5G will be the next outlet for packaging companies
The higher the downstream products, the advantages of advanced packaging technology can be reflected. In Daquan's view, the future applications that can drive the development of advanced packaging technologies include smart phones (fingerprint recognition, face recognition, wafer-level system packaging of important devices). IoT, automotive electronics and 5G, while the AI and AR markets do not have that much influence.
In view of the development prospects of the mining chip packaging market, Yu Daquan said that the emergence of Bitcoin has indeed brought great market opportunities for domestic and international packaging companies. According to statistics, Bitcoin brought about an increase of nearly 5 billion to 6 billion in output value last year. However, bitcoin is gradually declining. On the one hand, bitcoin has the risk of securities, law and many currency competitions. On the other hand, due to the tight trade relationship between China and the United States, the real economy and the virtual economy will be greatly affected. influences.
In addition, for the packaging market of memory, Daquan said that memory is a very large market, and Huatian has been seeking memory development. At present, Huatian Xi'an company is still doing memory packaging, and Shanghai. Some companies have cooperation. At the same time, Huatian also hopes to cooperate with the three major storage companies in the future.
Recently, Huatian Technology signed an Investment Agreement with the Nanjing Pukou Economic Development Zone Management Committee on July 6. The company plans to invest in the Nanjing IC Advanced Packaging and Testing Industry Base Project in Nanjing Pukou Economic Development Zone. The total investment of the project is 8 billion. Yuan, mainly for packaging testing of integrated circuits such as memory, MEMS, artificial intelligence.