Logic IC backend specialist Greatek Electronics is constructing two new factories, which are set to be completed for commercial runs in 2022, but the company has already seen clients start booking capacity at the new facilities, according to industry sources.

Greatek, an affiliate of Powertech Technology (PTI), is expected to raise the number of wire-bonding machines to 3,000 units by the end of 2021 from the current level of 1,700-2,800. And 800 more wire-bonders will be installed at one of the two new plants in northern Taiwan, set to come online in mid-2022 to process automotive chips, MCUs and other consumer logic chips, the sources said.

Another new plant under construction to be dedicated to chip probing services is also slated for commercial operation in mid-2022, the sources noted.

Persistently strong demand for automotive chips, MCUs and many consumer chips will keep wire-bonding capacity at major OSATs including ASE Technology and Greatek running at full utilization throughout 2021, the sources said, adding that many clients are seeking to sign long-term contracts with them to secure sufficient backend capacity support.

ASE Technology has signed two-year capacity guarantee agreements with some major clients, but Greatek will observe market conditions in the second half of the year before determining whether to follow suit, the sources said.

The sources also noted that ASE, PTI, ChipMOS Technologies and IC test interface specialists including WinWay Technology have all adopted strict precautionary measures against the COVID-19 pandemic, including banning visits to and from clients, and will continue to monitor possible pandemic impacts on their operations.