Demand for automotive MCU, MPU back-end remains strong

Supply chain sources said that the back-end demand for automotive MCUs and MPUs is still in a high-speed development stage, and OSATs and packaging material suppliers can see clear orders by the end of this year. Leading OSAT companies, including ASE Technology, have secured automotive MCU back-end outsourcing orders for the next two quarters from international IDM companies, helping to support the shipment momentum of lead frames required for mainstream QFP processes for such chips, the sources said.

Sources said that Taiwan's back-end partners began to negotiate 2023 orders with IDMs in the United States, Japan, and Europe from the third quarter of 2022, and found that these IDM manufacturers have become cautious about their business prospects in the second half of 2023.

Sources pointed out that automotive chip IDM is expected to slightly reduce orders for outsourced back-end business in the second half of 2023, but it remains to be seen whether demand for automotive MCUs and MPUs will reverse in the second half of next year.

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