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ChipMOS raising prices due to higher costs and demand

 

ChipMOS Technologies Inc, a display driver IC and memory chip tester and packager, recently said that it is raising the prices of most packaging and testing services this quarter as robust demand continues to drive its factory utilization to a high level, compared with an average of 87 percent last quarter.
 
The Hsinchu-based firm started to raise prices of packaging and testing services last month to reflect higher raw material costs and worsening capacity constraints amid constant delays in the delivery of new manufacturing equipment, it said.
 
Higher utilization rates and price increases are to give a further lift to the company’s net profit this quarter, ChipMOS chairman Cheng Chih-Chieh told a videoconference.
 
“In the wake of recovering demand, the company expects the growth momentum to extend into this quarter from last quarter,” Cheng said. “All of the company’s product lines will benefit.”
 
ChipMOS is expanding its capacity to meet customers’ demand, but the supply of raw materials and manufacturing equipment is unstable, he said.
 
This quarter, its testing and packaging service for memory chips is to outgrow the driver IC business due to a lack of supply of wafers, which would lead to fluctuations in the utilization of driver IC equipment, he added.
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