Packaging plays a larger role in chip supply


With much thinner margins than the foundries who actually produce finished wafers full of chips, the companies who package parts have been carefully avoiding spending money on additional capacity. That is pointing to a shortage in supply of packages, claim some producers.

According to Silicon Strategies, the packaging subcontractors are gearing up for a strong second half. But, because of the current shortages, which stand in contrast to the falloff in demand for wafer processing, some companies have started to bring packaging work back inhouse.