[News] Memory OSAT Prices Reportedly Jump 30%, Led by Powertech, Micron’s Key Supplier

While upstream memory makers continue to lift prices as supply tightens and demand surges, the impact is now cascading into the testing and packaging segment. According to the Economic Daily News, major Taiwanese memory OSAT providers — led by Micron’s key partner Powertech Technology — have raised testing and packaging prices in recent weeks, with increases of up to 30%.

The Economic Daily News notes that aggressive shipment ramp-ups by major DRAM and NAND flash makers have pushed capacity utilization at OSAT providers close to full, prompting them to make the move. Order books are reportedly overflowing, with a second wave of price hikes possible if tight supply persists.

At Powertech, the world’s leading testing and packaging provider for DRAM and NAND, Micron’s recent adjustments to its product and capacity mix have shifted more testing and packaging work to external partners, including high-end products such as mobile graphics and DDR5, the report notes. Supply-chain sources cited by the report said Powertech’s DRAM testing capacity is now nearly fully utilized, while NAND utilization also remains at elevated levels.

The rally is benefiting other Taiwanese memory OSATs as well, including Walton, which has long handled testing and packaging for Winbond’s niche DRAM and NOR flash products, the Economic Daily News adds.

ChipMOS, meanwhile, is emerging as a key beneficiary of the conventional DRAM market recovery. Analysts cited in the report noted that while NAND accounts for a relatively small share of revenue, DRAM — led by DDR4, which makes up roughly 70–80% of memory sales — remains the company’s core earnings driver.

Read more

• [News] Micron Reportedly Weighs Acquiring PSMC 12-Inch Tongluo Fab, With Multiple Partners Also Interested
• [News] Micron, SanDisk Reportedly Turn to PSMC to Fast-Track Memory Output Amid Tight Supply

(Photo credit: Micron)