Having benefited from the emerging application requirements of 5G such as high-speed computing (HPC) and ADAS (automatic driving assistance system), the supply of ABF carriers has become critical. Not surprising, the operations of Unimicron, Kinsus, and NanyaPCB have returned outstanding results this year. As pointed out by institute investors, ABF carriers will face a supply shortage in the upcoming three years. This should help relevent manufacturers in terms of operation capacity and profit margins.

 

        The combined revenue of Unimicron for the previous 5 months has increased by 15.72% year-on-year.

 

Foreign investors, based in the US, are optimistic about the growth momentum of ABF carriers from Unimicron; as it expands capital investments to align with customer needs.

 

As further pointed out by these US investors, ABF carriers can help increase the average unit price (ASP) and gross profit margins for products from Unimicron.

 

In times before, the ban on Huawei triggered corrections on stock prices. Nonetheless, the orders from Huawei and Hisilicon have only accounted for about 10% of revenue for Unimicron, which means that the ban on Huawei will have minimal impact on the company.

 

 Also considering that the clientele of Unimicron is rather diverse, while the supply of ABF carriers on the market remains critical. Therefore, the ban on Huawei would not have a negative, long-term impact on Unimicron.

 

        According to analysis by foreign investors, a strong demand for ABF carriers is expected to continue until 2022 and the gap of under-supply for ABF carriers should persist in those 3 years as the production remains insufficient to meet market demands. The primary demands for ABF carriers are for 5G applications such as high-speed computing, ADAS and etc. As such, Unimicron and Qualcomm, MediaTek, Broadcom, Skyworks, Quovo, and other major manufacturers have worked together seamlessly. As such, that should further facilitate cooperation and development for the latest applications.

 

        The operations of Kinsus have improved significantly this year. Its combined revenue has seen an annual growth of up to 22.35% in the first five months. Foreign investors are optimistic about the growth of Kinsus in regards to ABF carriers this year and antenna packaging (AiP) in the future. The company’s profitability is expected to grow significantly, with quarterly revenue expected to increase by 10-15% in the second quarter. (Source: Liberty Times)