Automotive IC verification and analysis demand continues to be strong and will drive the revenue growth of Taiwan-based companies such as Audix and Integrated Service Technology (iST), according to industry sources.

iST has seized verification projects in stable segments such as automotive chips, automotive power semiconductors, and high-performance computing (HPC). The company is relatively optimistic about the future market outlook and expects its operating performance to outperform overall market growth.

Operations for iST and its packaging and testing subsidiary Innovative Turnkey Solution (ITS) and wafer thinning subsidiary Prosperity Power Technology (ProPowertek) are stable, driving revenue in the second quarter to a record high. Net profit before tax increased more than 180% on year in the second quarter, with net profit before tax for the first half of 2022 increasing 102% on year. At present, 70% of semiconductor manufacturers involved in the automotive sector are customers of iST.

Audix is also expanding in the automotive field. Audix's technique service group is actively investing in EMC testing capabilities for automotive electronics products and is developing the necessary software for EMC testing of automotive electronics.

Sources observed while brand manufacturers are cutting orders for consumer electronics, they are also accelerating new product development plans to cope with grim market prospects. Although semiconductor customers continue to revise downward short-term growth expectations, they are still optimistic about long-term future development, particularly demand for automotive, HPC, and 5G cloud servers.

The war in Ukraine, soaring international energy prices, and rising electricity prices have put a spotlight on energy-saving technologies and green manufacturing. Low-temperature solder (LTS) verification promoted by iST has received attention from customers. It is estimated that the use of LTS can have energy savings of 40%.

According to a report by the International Electronics Manufacturing Initiative (iNEMI), although less than 1% of products currently use LTS, that number is expected to reach 20% by 2027. LTS verification demand is also expected to continue rising.

By DIGITIMES