According to market sources, back-end company Powertech Technology (PTI) plans to invest up to $ 200 million to expand the production capacity of high-end logic chips at its plant in Suzhou (China).
Sources indicate that with planned capacity expansion, PTI is competing for large orders for sophisticated logic ICs that are ordered by Hess Semiconductor next year.
According to sources, Hess has asked back-end partners to provide more testing capabilities, because the chip company is preparing to launch a new generation of chip solutions for Huawei smartphones and other devices scheduled to be launched in 2020.
PTI, which focuses on memory back-end services, has improved its logic chip products in recent years. According to industry observers, PTI plans to allocate 40% of future expansion budgets for its logical IC back-end business.
Observers said PTI invested $ 2 million in Taiwan's headquarters in the 5G mmWave (AiP) antenna module test room.
In general, ASE Technology Holdings, Sigurd Microelectronics and Jinyuan Electronics (KYEC) are other HiSilicon back-end partners, and they hope to build more new production capacity to meet the growing demand for Huawei equipment.