Persistently strong demand for MOSFET chips and niche-type DRAM have kept backend specialists including Walton Advanced Engineering, ChipMos Technologies and GEM Services running at capacity utilization of over 90% with order visibility through June-July, according to industry sources.

First-tier chipmakers now usually have their new offerings for system clients paired with niche-type DRAM products from vendors including Winbond Electronics, Nanya Technology, Etron Technology and Elite Semiconductor Microelectronics Technology (ESMT), fueling a surge in backend orders for such DRAMs, the sources said.

Among them, Winbond has released the majority of packaging orders to its affiliate Walton while relying on Powertech Technology (PTI) for testing services, the sources said, adding PTI and ChipMOs have also seen clear visibility for backend orders from other local DRAM makers through the end of second-quarter.

GEM, specialized in packaging power modules, has seen order visibility for MOSFETs and power management ICs for notebook, handset, 5G infrastructure applications through July, with power chips demand for industrial systems and automotive electronics also rising significantly, the sources said.

GEM chairman CL Cheng has disclosed that its 2021 capex will sharply expand to US$40 million from US$10 million in 2020 to procure new machines for its new plant in China's Heifei, with the facility to be completed in fourth-quarter this year and start revenue contribution in first-quarter 2022. The new plant will focus on processing high-capacity, high-voltage power modules.