LCD driver IC design houses will transition into 12-inch processes at the end of 2010 to the first quarter of 2011. Chipbond Technology is currently the only backend chip packager with gold bumping capability for 12-inch wafers, which has allowed it to dominate orders from Japan-based IC designers.

Encouraged by its Taiwan clients, fellow chip packager ChipMOS Technologies has revealed plans to add a 12-inch gold bumping production line in by the end of 2010.

At the moment, LCD driver ICs are mostly produced under 8-inch processes, but design houses in Japan and South Korea have begun the move into 12-inch, 0.11-micron technology to lower production costs.

Chipbond currently has two Japan-based customers for 12-inch gold bumping. With Taiwan-based driver IC designers also expected to adopt 12-inch technology in the coming months, Chipbond is expected to see more opportunities in the near future.

IC chip designers, however, are demanding ChipMOS sets up 12-inch capacity as well to diversify supply sources. ChipMOS will have monthly 12-inch gold bumping capacity of 10,000 units versus Chipbond's 15,000 units.

Chipbond's monthly shipments to the two Japan-based customers are around 7,000 units, which means utilization is under 50%. The company has no plans to ramp up capacity at the moment. With ChipMOS' entry, over supply could persist even with more Taiwan-based IC design houses adopting 12-inch technology.