Handset chipset vendors have said that their supplies of related chips will not be affected, at least within the next three months, by a possible plant shutdown at IC backend service firm Advanced Semiconductor Engineering (ASE), which has been accused by the government in Taiwan of dumping wastewater containing strong acids and toxic metals.

　　Chipset buyers and the industry's supply chains are currently at their year-end inventory checks, which have reduced short-term demand for related chips at the moment, said industry sources.

　　Additionally, chipset vendors and channel operators normally have stockpiles of up to 1-2 months, which should be enough to meet demand should the ASE plant shutdown last for no longer than three months, added the sources.

　　The sources also noted that the local top-2 foundry houses, Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC), as well as other chipset vendors, usually source packaging and testing capacity from 2-3 suppliers, and therefore they will be able to rearrange their supply sources in time.

　　Since the ASE plant accused for dumping wastewater is focusing on offering bumping services, chipset suppliers will be able to switch their orders to other backend service firms, including Siliconware Precision Industries (SPIL), Amkor, STATS ChipPAC, the sources noted.

　　TSMC has even built up its own bumping capacity to 150,000 12-inch wafers a month with total shipments amounting to over five million units, the sources revealed.