Display driver IC (DDI) backend specialists Chipbond Technology and ChipMOS Technologies have seen unstable capacity utilization for processing small- to medium-size applications due mainly to unstable wafer shipments from chip designers, according to industry sources.

Both companies are ramping up their capacity utilization for large-size DDIs for TV applications despite tight capacity supply at 8-inch wafer foundry fabs, as they continue to enforce specific projects in cooperation with major TV DDI vendors, the sources said.

Most handset vendors have expressed optimism about market prospects for the months ahead, but handset DDI suppliers are facing increasingly unstable wafer foundry capacity support, significantly affecting capacity utilization at their backend partners, the sources said.

Both Chipbond and ChipMOS have seen their DDI packaging capacity fully booked by chip vendors including Novatek Microelectronics, FocalTech Systems, Himax Technologies, Fitipower Integrated Technology and Raydium Semiconductor, but unstable capacity utilization may affect their actual shipments, the sources said.

Nevertheless, both backend houses have successfully raised their packaging service quotes for DDI chips, allowing them to expect better revenue and profit results in 2021, the sources continued.

By DIGITIMES