News & Events

Tight IC backend service capacity to ease after Lunar New Year holiday

Taiwan-based IC suppliers expect the current tight capacity at IC backend service firms to ease right after the Lunar New Year holidays, benefiting their business developments from the second quarter and beyond.

Most IC-design houses are expected to disclose flat sales for first-quarter 2021, affected by a recent extension of delivery lead-times for chips from backend service firms to 2-3 months from 2-4 weeks previously, said industry sources.

Logic IC vendors expect the delivery lead-times to be shortened after the holiday thanks to their advanced booking of related backend service capacities in fourth-quarter 2020.

MCU makers also expect wafer shipments from foundry houses and chip shipments from backend service firms to ramp up significantly starting early March, driving sales in the month and the second quarter.