November 16, 2011 - A host of companies are offering, or are in development with, fan-out wafer-level packaging (FO-WLP) for devices with large numbers of I/Os as an alternative to going finer-pitch (0.3-0.35mm) to keep using conventional fan-in technology, says TechSearch International, in an updated report.

Fan-out WLP offers the same low-profile advantage as conventional WLP: singulated die are placed into a "reconstituted wafer" with enough space around each chip to accommodate second-level connections. Among those offering or prepping FO-WLP options is the newly launched Deca Technologies; TechSearch cites Deca president/Tim Olson praising the "tremendous" promise of the technology to improve cost, inflexibility, and cycle times for tooling substrates, assuming the industry can overcome some "capital disadvantages and a few engineering challenges. "We are close to a tipping point," he says. Others offering FO-WLP include the usual SATS firms (Amkor, ASE, SPIL, STATS ChipPAC) plus a host of others including ADL, Freescale, Fujikura, Intel (via Infineon's wireless division), King Dragon, Nanium, Nepes (via Freescale's 300mm RCP line), Renesas, and Teramikros (née Casio Micronics).

The TechSearch report also updates the landscape for assembly pricing trends, noting that supply-chain disruptions from Japan's March 11 disaster have been mitigated but traditional substrate price declines haven't occurred -- and in fact some aspects saw price increases. Metal prices continue to be a heavy factor (particularly gold), which is spurring continued moves to copper wire bonding to reduce costs. Among other ways being sought to avoid materials costs: Amkor is converting its plastic ball grid array (PBGA) packages to pin-gate molding.

The report also incorporates new assumptions about the impact of the Thai flooding and impact on SATS businesses. Plants that produce disk drives, and their own subassembly suppliers, have been impacted (some severely) and will need to replace equipment. In some cases IC assembly facilities and related suppliers have suffered damage as well; case in point, Toshiba is temporarily shelving the planned sale of its Malaysian SATS facility to Amkor.