High cost investment in EMC packaging market is lower than expected

The rise of emerging technologies has brought unlimited business opportunities to industry competitors, and it has also impacted the market structure in its field. EMC (Epoxy Molding Compound) packages are favored by many LED package manufacturers.

EMC was one of the main raw materials for IC (Integrated Circuit) package manufacturing, and later extended to multiple package areas such as integrated circuits, consumer electronics, automotive, aerospace, military, and semiconductor devices. According to relevant statistics, EMC has occupied more than 97% of the entire microelectronic packaging materials market.

It is understood that mainstream packaging manufacturers including Hongli Optoelectronics (300219.SZ), Tiandian Optoelectronics, Jingke Electronics, Zhaochi Co., Ltd. (002429.SZ) and Jingtai Optoelectronics have already developed related research on EMC packaging. But as of now, in the field of LED lighting packaging, only Tiandian Optoelectronics has achieved large-scale mass production. Although other packaging manufacturers have acted, they are still in the stage of evaluation or small-scale trial production.

In fact, in addition to the strong production of large-scale packaging companies represented by LED listed companies to launch trial production, many small and medium-sized packaging manufacturers are also concerned about EMC packaging.

In general, the focus and risk of packaging companies' EMC investment is mainly focused on whether they are self-built (ie, self-built EMC bracket production line).

Zhu Xihe, general manager of Shenzhen Xingguangbao Optoelectronics Technology Co., Ltd. told reporters, "If you use the universal EMC bracket module in Taiwan, the general packaging factory does not have much problem. 80% of the traditional PPA bracket package and EMC packaged equipment can be shared. There are only different back-end devices such as splitters, tape machines and dicing machines."

In recent years, the demand for EMC packaged devices in the international market has gradually increased, and domestic stent manufacturers have been extremely cautious about the investment in EMC brackets. Therefore, some powerful packaging manufacturers in China have begun to build their own stent production lines.

“Tiandian has already set up a relatively complete EMC bracket and packaging production line, and the investment of each production line is as high as several tens of millions of yuan.” Qu Jiude, vice president of Tiandian Optoelectronics Market, previously revealed in an interview with this reporter that it is high. Investment is not something SMEs can afford, and EMC packaging will eliminate a large number of companies that lack capital and technology.

However, due to the domestic market demand for EMC packaging is still not obvious, even the strong support manufacturers are not willing to venture. Chen Zhongming, chairman of Taiwan Interpretation Precision Domestic Market Agent Shenzhen Quanjing Optoelectronics Co., Ltd. said: "The comprehensive cost of EMC stent production line is too high, and its market development situation is difficult to say. At present, Yiquan Precision has not done related research and development. After the market demand is further clear, consider this investment."

In the domestic market, packaging manufacturers that have invested in research and development of EMC packaging are extremely confidential about their production capacity and customer situation, so it is difficult to understand the feedback of downstream LED lighting manufacturers after using EMC packaged devices. However, from the current domestic production of EMC packaging back-end equipment manufacturers, EMC packaging has not really started in the domestic market.

"The sales of EMC packaged back-end equipment this year are not very good. Basically, there are not many package manufacturers purchasing and using." Feng Baihua, general manager of Shenzhen Sanyi Lianguang Automation Equipment Co., Ltd. told reporters that the company started research and development of EMC spectrometer equipment two years ago. , has been relatively mature, but as of now, the sales of EMC packaging equipment is far lower than the first half of the year.

Feng Baihua bluntly said that its prospects for the domestic EMC packaging market are not even optimistic. Ye Qingshan, the general manager of Shenzhen Huateng Semiconductor Equipment Co., Ltd., which is involved in the production of EMC spectrometer equipment, also admitted that as early as the end of 2012, its EMC spectrometer equipment has also been successfully developed, but from the sales in 2013, domestic Packaging manufacturers' purchases of EMC equipment are still relatively conservative.

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