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Logic IC packager Greatek to raise quotes later in 1Q21

Greatek Electronics, a Powertech Technology (PTI) subsidiary dedicated to logic IC packaging, plans to raise its quotes between the end of February and the beginning of March to reflect its tight capacity, according to Boris Hsieh, CEO of the PTI group.

Hsieh confirmed at a recent PTI investors conference that Greatek will enforce a double-digit hike in backend service quotes, but stressed that the new prices will be applied mainly to new orders.

Hsieh noted raising quotes is a must as materials costs have risen significantly over the past months, and Greatek has also seen increasingly tight capacity supply for its wire bonding process amid surging demand for automotive peripheral chips including MCUs and other logic ICs.

He said that demand for automotive chips have ramped up significantly since second-half 2020 and some Japan-based heavyweight vendors of automotive chips have deferred their backend orders to the PTI group to first-half 2021 as they have been unable to get sufficient foundry support in the past months.

He disclosed that PTI's testing service subsidiary TeraPower Technology has received chip probing orders from Japanese automotive chipmakers, which will start contributing revenues in March.

PTI chairman DK Tsai also noted at the conference that the group will see 35-40% of its chip probing and final test revenues come from the segment of automotive chips. He said if including automotive logic IC and memory chips backend services, the car semiconductor sector will contribute 10% of PTI's combined revenues in 2021.

PTI is expected to maintain its 2021 capex at roughly the same level of NT$15 billion as recorded in 2020, according to company sources.