Memory backend specialist Powertech Technology (PTI) is gearing up to expand its business in the logic IC field in 2021 with focus placed on flip-chip packaging and bumping services, seeking to become an all-round OSAT, according to company chairman DK Tsai.

Tsai, speaking at PTI's recent investors conference, said the company has more than 10 major logic IC clients and will see FC and bumping business for midrange and high-end logic ICs grow to over 50% of its revenues in mid-2021. He stressed it will further ramp up the ratio to 60-70% in the future.

Tsai said PTI has moved in fourth-quarter 2020 to transfer over 700 wire bonders from its mobile memory chips PoP (package on package) production lines in Taiwan to support logic IC backend services badly needed by clients, and has also adjusted its product mix accordingly.

Tsai also noted overall memory backend demand is expected to rebound steadily starting March, and PTI will purchase new wire bonders if needed for packaging memory chips as the equipment already switched for logic IC packaging will not be moved back. He has expressed optimism that SSD NAND flash backend orders will be significantly driven by strong 5G-induced demand for cloud storage solutions in 2021.

PTI's memory backend plant in Xian, China now mainly handles packaging of commodity DRAM chips with window BGA (wBGA) process for notebooks, desktops, and servers, and has seen its capacity in short supply amid growing demand for terminal devices supporting stay-at-home economy, although its monthly capacity has already risen to 140 million chips from 120 million, according to Tsai.

PTI's CEO Boris Hsieh also noted apart from memory and logic IC backend segments, PTI will also step up development of CIS (CMOS image sensor) technology and may start small-volume production this year and mass production in 2022. He continued that PTI also expects to commercialize its FOPLP (fan-out panel on panel) packaging technology by the end of 2022.

By DIGITIMES