Chip demand for 5G, AI, and automotive applications continues to grow robustly, but substrates needed to process related chips will remain in short supply until at least 2025, which will accelerate the entry of substrate-free fan-out (FO) backend solutions, such as FOPLP ( panel level package), into the advanced packaging market, according to Robert Lin, general manager of Manz Asia.

Taiwan-based backend houses have seen demand for large-size display driver ICs (DDI) and touch and display driver integration (TDDI) chips decelerate due to weakness in the TV, notebook, and PC markets, according to industry sources.

Accton Technology plans to set up a new production site in Vietnam and build a backend assembly plant in India, the Taiwan-based network switch specialist has said, as it moves to diversify its operations.