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on long-term trends, projections from time, we are vigilant and looking at all
leading market analysts, such as Gartner, options to ensure our future success.
WSTS and IC Insights, all anticipate
double-digit year-on-year (YoY) growth Acknowledgment
to be experienced in both 2021 and 2022. This article originally appeared in the
The momentum surge in 5G mobile SSIA VOICE magazine and was updated
connectivity, artificial intelligence (AI), and edited for Chip Scale Review.
virtual reality (VR), data and cloud
computing servers, plus advances in Figure 2: CapEx spent by UTAC as a percentage of Biography
industrial and automotive technologies, revenue. Asif R. Chowdhury is SVP at UTAC
all seem certain to continue. Group, Singapore. He has over 30 years
To take advantage of these trends there remains strong, it will be of paramount of experience in the semiconductor
will be a need to continue increasing importance that we remain vigilant, and i ndu st r y. Before joi n i ng U TAC,
the degrees of automation incorporated mitigate any remaining threat posed by he held senior positions at Amkor
into our test and assembly operations. COVID-19. If demand starts to weaken, Technology, Chandler, AZ, and Analog
Figure 1 shows a summary of UTAC’s which, invariably it will at some point due Devices, Wilmington, MA. He holds
automation project, which utilizes key to the cyclic nature of the semiconductor a BS in Mechanical Engineering from
technologies such as robotics, artificial market, that will add another layer of U. of Texas at Arlington, an MS in
intelligence, augmented reality (AR)/ complexity with which to be reckoned. Mechanical Engineering from Southern
VR technology and application specific Despite all the challenges that the Methodist U., and an MS in Finance
softwares. Almost 100% of assembly and pandemic has presented, and the and an MBA from Northeastern U.
test for automotive products are utilizing repercussions that we are facing in its Email asif_chowdhury@utacgroup.com
these automation technologies. These aftermath, UTAC is in a very strong
technologies, combined with a highly position moving forward. At the same
trained and up-skilled local workforce,
along with continued access to a robust
supply chain, have improved overall
factory productivity and efficiency. We
have invested in state-of-the-art industry
4.0 Internet of Things (IoT) devices and
robotic systems, as well as leveraged
the latest AI technology, in order to
increase the levels of automation at our
facilities. Figure 2 shows the increase
of overall CapEx spent by UTAC in
the last three years as a percentage of
revenue, which includes CapEx spent for
factory automation. These expenditures
have resulted in heightened machine
eff iciencies, greater th roughput,
improved cycle time, reduced cost and
most importantly, improved quality.
All these initiatives have significantly
enhanced our quality, which is currently
in the low single-digit parts-per-billion
(PPB) with automotive products at a high
single-digit PPB level.
Though business conditions are
starting to improve, it would be unwise
for our industry to assume that we are
now fully through the storm. There may
yet be further problems ahead. All the
indicators and forecasts-to-date suggest
that 2022 should be a good year for the
semiconductor industry, with demand
driving strong revenue growth. But it
is too early to tell. If indeed demand

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