Taiwan IC Packaging (TICP) regards microSD card backend production as its key sales driver in 2008 while newly deployed segments including fingerprint authentication, quad-flat-pack-no lead (QFN) packaging are promising, according to the company.

Pointing to the NAND flash shortages, TICP said its monthly microSD shipments are still limited to 1-2 million units in the second half of 2007 despite investment from Transcend Information. However, the slow ramp in shipments has not discouraged TICP from believing microSD will be the key sales driver in 2008 as the card standard is expected to gain penetration in all kinds of handsets next year.

TICP updated that it currently houses a microSD packaging capacity of four million units. Whether expansion will be made in 2008 depends on market and customers demand, the company added. As the shortage of NAND flash wafers dampened sales of microSD cards in the first half of 2007, TICP said the situation will be improved in 2008.

Having said earlier that sales for fingerprint authentication ICs should pick up in the second half of 2007, TICP revealed that validation with notebook customers is underway via its customer LighTuning Tech (LTT). Acer, Asustek Computer, Compal Electronics and Wistron are all potential customers, TICP remarked. The company also added in saying that orders from notebook customers will be settled during second quarter of 2008, implying that corresponding sales contribution should emerge from then.

Regarding its QFN business, TICP reiterated that monthly sales contribution will surpass NT$100 million (US$3.1 million) in 2008. Currently the production proportion of QFN is about 25% and is expected to ramp up to 30% in 2008, driven by the transition from ball-grid array (BGA) to higher pin-count packaging. For the leadframe business, TICP guided another 15% on-year sales growth in 2008, noting that the company has been able to suppress the effect of rising gold costs by shrinking the linewidth between dies and substrates.