Burst! Major packaging and testing plants in Malaysia suspended for a week, including customers such as Infineon and ST

Malaysia’s important packaging and testing plant shuts down for a week

Malaysia’s local packaging and testing plant Unisem announced on Wednesday that it will close its plant in Ipoh, Perak before September 15 to prevent the spread of the new crown epidemic. The suspension is expected to reduce its annual output by about 2%.


Malaysia is one of the most important semiconductor export markets in Southeast Asia and even Asia, second only to China, Japan, South Korea, Singapore and Taiwan. At the same time, it is also one of the main centers of global packaging and testing. Southeast Asia has a 27% market share in global packaging and testing, of which Malaysia alone accounts for nearly 13% of the global market. According to statistics, there are currently more than 50 semiconductor companies in Malaysia, most of which are multinational companies, such as AMD, Freescale Semiconductor, Infineon, STMicroelectronics, Intel, Renesas, Texas Instruments, etc.

Unisem is one of Malaysia’s large chip packaging and testing companies and a global provider of semiconductor assembly and testing services. Its products include chip probing, chip grinding, various lead frames, substrate IC packaging, chip-level CSP and RF, analog, digital and Mixed signal testing services, etc.

John Chia, chairman of Unisem Bhd, said that many employees have been diagnosed and three employees have died from the infection. John Chia said: “Unisem customers are very anxious because we are an important part of the supply chain. We have started to carry out an on-site vaccination program for our employees and will continue to work hard until all our employees, customers, engineers and contractors are vaccinated. .

It is reported that the service quotation of packaging and testing plant in Taiwan, China has been increased by 10-20%

In addition, according to the news from Jiwei.com, the service issue of packaging and testing plants in Taiwan, China has recently become the focus of heated discussions in the industry.According to a digitimes report, it is expected that the supply of testing capacity of packaging and testing plants in Taiwan in 2022 will be in a tight state for a long time. According to sources, packaging and testing plants such as ASE and KYEC will determine the production capacity allocation for major customers including MediaTek and Qualcomm in the first half of 2022, and have begun to receive engineering samples of products in 2022.


This will enable these companies to increase the price of test services by 10-20%, with a smaller price increase for major customers, and a larger price increase for small customers.

Mature chip manufacturers are gradually transitioning from 28nm process to 16nm process, especially the 12-inch wafer fab production line requires higher-end test support. The source added that the packaging and testing plant on the island is currently expanding its test capacity, but the delivery cycle of test equipment has been extended from 4-6 months to 9 months, which may lead to a longer duration of the tight capacity supply.

Packaging and testing is a key part of semiconductor manufacturing. As the epidemic in Malaysia worsens, regulatory actions in Southeast Asia continue, and global chip supply tensions will continue. The suspension of Unisem’s production highlights the disruption of the global supply chain by the new crown epidemic.

Post time: Sep-10-2021