STATS ChipPAC Plans Across-the-Board Packaging Price Hikes of 20%-30%
N.R. Finch
STATS ChipPAC, the main overseas OSAT arm of China's JCET Group, is set to raise prices on nearly all packaging processes by 20%-30% in H2 2026 — a sign that AI-driven repricing has spread from advanced packaging to mainstream lines.
Who is raising prices, and by how much?
STATS ChipPAC has notified select customers of the planned increases and confirmed the move to DIGITIMES. Final figures depend on product category and customer negotiations.
Industry sources say an average increase of 20%-30% would not be surprising.
This means → this is not a single-product adjustment but a full repricing by a top-tier OSAT — outsourced semiconductor assembly and test — provider.
Which processes are affected?
The hikes span wire bonding, flip-chip, wafer-level packaging, fan-out, 2.5D/3D advanced packaging, and system-in-package (SiP) — virtually every mainstream process.
In plain terms = whether it is high-end packaging for AI chips or standard packaging for consumer electronics and automotive chips, quotes are moving up.
This reflects a repricing wave that has moved well beyond the AI niche into the full packaging supply chain.
Why is the whole industry raising prices?
Demand: AI servers, AI accelerators, and high-bandwidth memory (HBM) keep ramping, tightening advanced-packaging capacity and giving OSAT vendors more pricing power.
Costs: gold, copper, packaging substrates, and lead frames remain at elevated levels, pushing up input costs.
Supply: new capacity takes roughly 18 to 24 months from construction to volume production, limiting near-term relief.
Are peers raising prices too?
ASE Technology (日月光) has reportedly raised quotes on advanced packaging including CoWoS and FoCoS, with some increases exceeding 20%.
Memory-packaging vendors have added surcharges on select products tied to strong AI-server demand, with reported hikes as high as 30%.
This means → STATS ChipPAC is not an outlier but part of a global OSAT repricing cycle that began in 2025, with the industry moving in step.
What does this mean for downstream customers?
STATS ChipPAC's customers span consumer electronics, telecom, automotive, and data-center segments, including major IDMs and fabless chip designers.
AI demand has spilled from CoWoS and 2.5D/3D into power-management ICs, networking chips, and some mature packaging processes, keeping overall supply-demand tight.
In plain terms = downstream companies have few short-term options — switching suppliers is impractical, new capacity is at least a year or two away, and cost pressure will likely pass through to end products.
Content is for reference only, not financial advice.