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China Now World’s Largest Consumer of Semiconductor Packaging Equipment and Materials

Published: Apr 03,2018

Fueled by heavy government investment, IC packaging and testing in China generated $29 billion in revenue in 2017, making China the world’s largest consumer of packaging equipment and materials, according to SEMI’s recent China Semiconductor Packaging Industry Outlook report.

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SEMI surveyed 87 semiconductor packaging- and assembly-related companies for the research report, including key semiconductor packaging manufacturers in China. More than 100 companies compete in China’s packaging and assembly market, including leading multinational companies and emerging domestic players. More than half of China’s packaging companies are located in the Yangzi delta region, while midwestern China has emerged as a hotbed for packaging plants.

Compared to other world regions, China’s investments in IC packaging and testing saw the fastest growth over the past decade, with domestic manufacturers securing strong support from both national and local governments to ramp capacity and technical capabilities.

The top three domestic packaging companies – JCET, Huatian, and TFME – all entered the top 10 global OSAT rankings following expansions and acquisitions from 2012 to early 2016.

The SEMI report also elucidates the importance of both central and local government support, guidelines and policies on China’s semiconductor industry. The National Fund and local IC funds, created in 2014, and the Made in China 2025 policy provided a second boost to China’s IC industry growth.

For packaging and testing enterprises, maintaining strong communications and relations with relevant government bodies and industry associations is essential to securing both political and financial support, in part because China’s semiconductor manufacturers and IC assembly and packaging companies are expected to purchase equipment and materials made in China.

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