Increased Outsourcing Drives Growth in the Asian Semiconductor Packaging and Manufacturing Markets

SINGAPORE, May 15 /PRNewswire/ -- The Asian semiconductor packaging and
manufacturing markets look set for robust growth in the coming years.
Future market growth will likely be governed by semiconductor companies
increasingly outsourcing their manufacturing activities to low-cost Asian
foundries as well as the move towards smaller geometries and migration
towards a fabless business model.
   New analysis from Frost & Sullivan
(http://www.semiconductors.frost.com), Asian Semiconductor Packaging and
Manufacturing Markets, reveals that revenues in the Asian semiconductor
packaging market totaled $16.60 billion in 2006, and estimates this to
reach $28.56 billion in 2010.
   If you are interested in a virtual brochure, which provides
manufacturers, end users, and other industry participants with an overview
of the latest analysis of the Asian Semiconductor Packaging and
Manufacturing Markets, then send an e-mail to Donna Jeremiah, Corporate
Communications, at djeremiah@frost.com with your full name, company name,
title, telephone number, fax number, and e-mail address. Upon receipt of
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   "The trend towards outsourcing semiconductor manufacturing activities
is the major driver for the Asian semiconductor packaging and manufacturing
markets and its impact is likely to remain very high throughout the
forecast period," notes Frost & Sullivan Research Analyst Jagadeesh
Sampath. "Turnkey services, lower material prices, faster turn-around time
and inexpensive labor as well as installation and maintenance costs are
some of the critical elements contributing to this prospering trend."
   Furthermore, advancements in technology, especially the move toward
smaller process geometries and the adoption of advanced packages, are
likely to drive the outsourcing of semiconductor packaging and
manufacturing to Asia. Form factors of integrated circuits (ICs) are
reducing considerably and a move towards smaller process technologies such
as 90 nm and 65 nm is apparent in the market. The Asian semiconductor
manufacturing and packaging companies are witnessing new business
opportunities in these new technologies and are anticipated to leverage
them to increase their revenues.
   With regard to technologies, wafer-level packaging (WLP) is
progressively gaining significance in the Asian semiconductor packaging and
manufacturing markets. Although WLP is currently being applied for small
dies, it is expected to be utilized for larger dies in the near future. Its
application range is also expected to increase from low input/output (I/O)
devices to high I/O devices such as application-specific integrated
circuits (ASICs). Reluctance to invest in cutting-edge technologies is
likely to be the major challenge in the Asian semiconductor packaging and
manufacturing markets. Due to the huge investments involved, only a few
companies embark on new process technologies such as 90 nm and 65 nm.
   "Companies that invest in new cutting-edge technologies must be
prepared to restructure their processes for mass production as well as
better yield," notes Sampath. "They also need to establish a good customer
base for these new process technologies. Only a few customers will be using
the cutting-edge
   technology, thereby making this a key challenge with very high impact
throughout the forecast period."
   In order to stay competitive in the Asian semiconductor packaging and
manufacturing markets, companies will need to invest in cutting edge
technologies, establish strategic partnerships with customers, and focus on
acquisitions and mergers.
   Asian Semiconductor Packaging and Manufacturing Markets is part of the
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