IC packaging materials distributors continue to see strong demand for wire-bonding operations despite uncertainties facing sales of notebooks, handsets and other end-market devices in the fourth quarter of the year, according to industry sources.

Distributors including Wal Lee Industrial, Chang Wah Electromaterials (CWE) and Niching Industrial continue to see revenue and profit gains driven by robust shipments to backend houses now sustaining full wire-bonding capacity utilization, as well as to IC substrate makers busy fulfilling abundant orders on hand, the sources said.

Makers of both ABF and BT substrates are enforcing capacity expansions to meet ever-increasing demand for processing diverse chips solutions, allowing Wah Lee and other peers to land substantial orders for materials such as stepper and high-resolution electroplated dry films needed for substrate production, the sources continued.

CWE has sustained strong shipments of epoxy resin and leadframes for wire-bonding packaging, and has been able to raise its leadframe quotes quarter by quarter to reflect cost increases amid increasingly tight capacity supply, the sources noted.

Niching has seen order visibility extended significantly for materials including shipping reels, chip trays and emboss tapes needed to support COF (chip on film) packaging of display driver ICs, and its shipments of packaging-use heat sink and capillary solutions have all hit record highs so far this year, the sources added.

Wal Lee's August revenues rose 18.6% on year to NT$6.06 billion (US$218.89 million), and January-August sales increased 20.9% on year reaching NT$45.34 billion.

CWE's August revenues jumped 41.34% on year to NT$1.822 billion, with sales for the first eight months of the year advancing 24.66% on year to NT$13.152 billion.

Niching saw its August revenues grow 15% on month and 34% on year to NT$110 million, and its January-August sales ballooned 37% on year to NT$820 million.

By DIGITIMES