South Korean manufacturer TechWing has received its first orders to supply semiconductor Burn-in testing chambers from one of its clients, according to industry sources on Nov. 8.
The orders come after receiving separate orders for sorters, which the firm plans to finish supplying up until the first quarter of 2020. "We expect around 15 billion won of fresh revenues from the burn-in testing equipment business next year,” said a TechWing official.
As a part of its strategies to up its ante in the Burn-in equipment sector, TechWing spent 9.8 billion won to buy a 49.73 percent stake in non-listed firm TruTech, which produces interface boards for the Burn-in process. "From this year until next, we will focus mainly on diversifying our product portfolio to raise more sales from a wider range of businesses,” said the company official.
The semiconductor testing process usually consists of Electronical Die Sorting (EDS), Burn-in and the final test. Burn-in tests are an accepted practice for detecting early failures in semiconductor devices. Up until now, TechWing’s main source of income has come from test handlers, which are used to automatically divide products into standard and sub-standard based in the final test stage. TechWing is looking to enter the EDS market in earnest in 2H of 2020 with new equipment.
Meanwhile, the supplier's earnings are expected to fall this year from 2018, mainly after its biggest client SK hynix began to cut investment on lackluster market conditions. Both industry watchers and TechWing officials, however, believe next year will be better, mainly on the fast recovery of the NAND flash market.
"Toshiba and Sandisk both plan to expand their facilities, and next year, the DRAM market will see bigger demand for new equipment and components once it moves from DDR4 to DDR5,” said one market source with knowledge on the matter.
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