Taiwan lead frame maker SDI plans to expand its production capacity by 15% in the first half of 2018 to meet increasing application of lead frame-based QNF (quad flat no-lead) packaging of automotive chips, power semiconductor, and power management modules, with the firm's visibility of orders remaining clear throughout the first half, according to industry sources.

SDI reported consolidated revenues of NT$9.581 billion (US$323.25 million) for 2017, surging 8.8% on year. The company has enjoyed stable orders from leading international semiconductor IDMs including STMicroelectronics and expects its first-half 2018 revenue performance to be better than a year earlier, the sources said.

The company is expected to see the revenue contribution ratio for lead frames for packaging automotive discrete power semiconductor to rise to 30% in 2018 from 26% in 2017, as many international IDMs have ventured into the automotive electronics segment along with fast development of smart and autonomous vehicles by automakers. The firm's revenue ratios for lead frames for packaging industry-use power management modules and those for smartphones are estimated to reach 30% and 32 %, respectively, in 2018.

On another front, Japan's Dai Nippon Printing (DNP) has also recently announced a capacity expansion plan in the wake of sharp growth in demand for QNF package lead frames from 3C, automotive electronics, and industry power management segments, according to the firm's Taiwan channel distributor Niching Industrial.

Among other Taiwan players in the field, Jih Lin Technology, dedicated to supplying lead frames for power semiconductor devices and power management modules, and ChangWah Technology, specializing in offering lead frames for packaging logic ICs, also have strong business prospects in 2018, according to industry sources.