2. Manufacture of plastic housings

2.1 Encapsulation market

Major manufacturers generally have their own in-house assembly plants. However, they also partially subcontract assembly, and even final electrical testing, in order to better manage variations in demand and devote themselves to higher value-added products. In this way, they retain the ability to innovate in-house, and stay one step ahead in terms of housing development.

Smaller manufacturers, and some so-called "fabless" manufacturers specializing in complex circuit design, use subcontractors exclusively for component assembly. Package development is then carried out in partnership with the subcontractor, the largest of whom (such as Amkor Technology, ASE Global, STATS ChipPAC and SPIL) compete with the major manufacturers in this field....