Taiwan’s leading driver IC packaging and testing companies, Chipbond and ChipMOS, have reportedly raised their prices in response to the surge in international gold prices, which recently hit a record high of $3,400 per ounce, according to Economic Daily News. This marks the first time that semiconductor companies have adjusted their pricing due to the spike in gold prices, which plays a crucial role in the gold bumping process used in panel driver IC packaging.
Driver IC Packaging Leaders Adapt to Rising Gold Costs
Chipbond, the world’s largest provider of specialized packaging and testing for driver ICs, serves major global clients, including Apple and Sony. As a significant player in the gold bumping process, Chipbond is expected to incorporate the higher gold prices into its upcoming price quotes.
Similarly, ChipMOS, which handles a substantial volume of driver IC packaging orders, has thus far maintained stable contract manufacturing prices. However, the company is also expected to increase its packaging quotes in response to rising gold costs.
Historically, intense price competition in the driver IC market made it difficult for packaging and testing companies to pass on cost increases. However, recent geopolitical developments have reduced the number of competitors in the market, providing companies with greater flexibility to adjust prices and absorb the impact of rising gold prices without significantly harming their margins.
The Importance of Gold in Driver IC Packaging
Gold bumping technology plays a critical role in semiconductor packaging, particularly in the production of driver ICs for LCD and OLED displays. Gold’s superior electrical conductivity, high ductility, strong material stability, and excellent heat dissipation make it an ideal material for use in the bumping process. These properties ensure that gold can meet the stringent requirements for thickness, spacing, and consistent performance in driver ICs.
The bumping process, which involves applying small metal bumps to the IC package, is essential for reducing the size of the IC while maintaining high density and heat dissipation. Gold is often the material of choice due to its ability to provide stable electrical contacts and ensure efficient performance.
In addition to being used in driver ICs for displays, gold bumping is also employed in the packaging of memory and RF ICs. ChipMOS explained that its gold bumping technology is designed to provide optimal contact between the LCD drive IC and the substrate or glass plate in different types of devices, such as Chip On Film (COF) or Chip On Glass (COG) configurations. Through various processes like sputtering, photo-resist coating, lithography, and plating, ChipMOS constructs metallic bumps on the aluminum pads of LCD driver ICs, ensuring optimal functionality.
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