Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL) have both developed low-cost IC substrates to satisfy demand from mobile chip suppliers, which are seeking to further lower their costs for solutions targeted at entry-level and mid-range devices, according to industry sources.

　　SPIL started shipping low-cost flip-chip (FC) substrates to MediaTek for chip solutions used in handsets and tablets in the second quarter of 2013, said the sources. Rival ASE kicked off volume shipments of its low-cost IC substrate solutions in the third quarter, striving for orders from MediaTek and other chip firms, the sources indicated.

　　A number of mobile chip firms have expressed interest in utilizing coreless IC substrates, which offer lower costs over cored ones, with some already engaged in the process of product verification, the sources observed.

　　MediaTek was the first company to use coreless substrates in its mobile chips. The chip firm has been exploring ways to reduce costs in order to stay competitive in the price-sensitive handset market, and continues to work with its supply chain to develop low-cost packaging and materials methods, the sources noted.

　　In other news, SPIL's investment in Singapore-based IC substrate specialist Microcircuit Technology (MCT) is expected to have significant positive effects on the development of its low-cost FC substrate solutions, the sources indicated.

　　SPIL in mid-2012 announced the acquisition of a 42.27% stake in MCT for US$20.5 million.