Manpower crunch becoming new normal for semiconductor sector, says ASE chair

Julian Ho, Taipei; Willis Ke, DIGITIMES

Wednesday 25 May 2022

ASE Technology chairman Jason Chang. Credit: DIGITIMES

Labor and talent shortages will become a new normal for the semiconductor industry, and how to leverage AI, automation and systematization technologies to address diverse market needs is emerging as a new challenge for semiconductor players, according to Jason Chang, chairman of ASE Technology.

Chang said in his latest business operation report to company shareholders that ASE Technology experienced a fruitful year in 2021, with its revenues, gross margins and earnings per share for the year all beating projections despite the impacts of the US revising its Export Administration Regulations (EAR) on semiconductor backend operations.

The report said besides impressive revenue gains from wirebonding packaging services, the company’s testing business doubled on year in 2021 and will continue to grow in 2022. Its automotive chips packaging sales will sustain 2021 growth momentum and are estimated to top US$1.0 billion in 2022, and SiP revenues are expected to exceed US$500 million, bolstered by expanded customer bases.

Chang also noted that green energy development projects by the government and enterprises will affect long-term deployments by semiconductor supply chains. He stressed the semiconductor industry will undergo value and supply/demand adjustments, providing more business opportunities than challenges in the process of quantitative and qualitative changes.

As part of its future development strategy, ASE Technology will continue to enrich its innovation culture and help move semiconductor supply chain towards higher value system integration, highlighting the importance of heterogeneous chips packaging in system integration and innovation while sharpening the capability to integrate IC design side to materialize digital transformation.

The group will also strive to provide customers with sustainable services, through integrating advanced packaging technology development, as well as equipment and materials procurements among subsidiaries to create synergies in R&D investments, capacity build-up, and gross margins and operating expenses, optimize services to clients and create maximum values and benefits.

Source: https://www.digitimes.com/news/a20220523PD208/ase-ic-manufacturing.html