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Viewpoint Index

January 7, 2016

VIEWPOINT 2016: John Nelson, Ph.D., Chief Executive Officer, UTAC Group
VIEWPOINT 2016: John Nelson, Ph.D., Chief Executive Officer, UTAC Group
John Nelson, Ph.D., Chief Executive Officer, UTAC Group
It will be a slow start to 2016 with excess semiconductor inventory taking time to deplete over the first half of 2016. There could be a rebound in customer demand in 2H2016 with the release of new smart phone models although the year-on-year growth in 2016 will be flat to modest.

For UTAC, 2015 marks the first full year of consolidation of the three backend facilities that we acquired from Panasonic in mid-2014. The new facilities enabled us to enter new markets in image sensor devices and smart card based security products. It also opened new opportunities in the automotive industry as well as the Japanese market. The automotive segment currently accounts for 10% of our revenue and growing.

As a top tier assembly and test services provider, UTAC will continue to pursue turnkey opportunities leveraging on our strong test capabilities, which is around 35% of our overall revenue. Analog is another of our key strengths where we serve 7 out of the top 10 analog semiconductor companies globally and we will continue to grow our customer base in this segment by focusing on our strong track record and wide package portfolio.

We are expanding our R&D teams in Singapore and Thailand to support various new package developments. We are enhancing our lead frame product family through the roll out of new copper clip assembly capability for power devices. We are also developing a novel wafer molding capability for WLCSP (wafer level chip scale packaging) applications that will enhance device reliability and ruggedness. We are also investing in new grid array QFN (GQFN), MEMs, and SiP capabilities including a 3D SiP architecture that offers system integration size and performance benefits.

John Nelson, Chief Executive Officer
UTAC Group