Taiwan's IC packaging materials suppliers, including Niching Technology and Chang Wah Technology (CWTC), have seen their order visibility improve significantly, according to industry sources.

Many IC backend service firms have stepped up purchases of related packaging materials as they are currently operating in high gear rolling out an array of ICs for consumer electronics products for year-end seasonal demand, said the sources.

Niching's sales expanded 11% sequentially and 23% on year in third-quarter 2020, with significant orders from ASE Technology Holding, SPIL and Greatek, the sources said.

QFN (Quad Flat No-lead) leadframe maker Chang Wah Technology (CWTC) revealed that all of its QFN production lines are currently operating at full capacity and that the company is expanding its capacities at its plants in Taiwan and Suzhou, China.

The number of QFN leadframe production lines at CWTC will reach 230 by year-end 2020, said the company.

The industry sources also noted that Japanese QFN leadframe suppliers have raised their quotes by 15-20% recently due to shortages, which has prompted Taiwanese backend service firms to increase their purchases of QFN leadframes from local suppliers.

By DIGITIMES