IC packaging and testing firms including Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL) are expected to provide a cautious outlook for the second quarter of 2011, due to concerns over upstream material shortages caused by Japan's recent earthquakes, according to market watchers.
Shortages of bismaleimide-triazine (BT) resin could hurt 30-40% of ASE's total revenues generated from its core ATM (assembly test and material) business, the watchers said. For SPIL, if interruptions in the supply of substrates persist until May or June, the company would encounter problems in its delivery, the watchers indicated.
ASE's ATM division generated sales of NT$30.88 billion (US$1.1 billion) in the first quarter of 2011, down 5.3% sequentially and slightly below the company's previous expectation. SPIL's consolidated revenues slid 6.5% on quarter to NT$14.47 billion during the same period.
Morris Chang, chairman and CEO of Taiwan Semiconductor Manufacturing Company (TSMC), recently remarked that the company has seen clients affected in the wake of the March 11 disaster and power blackouts in Japan. Supply chain disruptions have been caused, and therefore TSMC cut its growth forecast for the 2011 chip industry (excluding memory) to 4%.
Chang predicted that the tragedy in Japan should only have a near-term impact on the worldwide semiconductor industry supply chain. Companies are likely to see revenues hurt in the second quarter, but will manage to recover later in 2011, Chang believes.