Chang Wah says semiconductor inventory correction has ended, sees 2026 sales growth

Chang Wah’s signal that semiconductor inventory correction has ended reflects a deeper shift: power management and advanced packaging segments are entering a new capacity tug-of-war. Technically, surging demand from AI data centers for high-efficiency PMICs is forcing upstream leadframe materials toward higher thermal conductivity and integration density, accelerating upgrades in copper alloys and ceramic substrates. On the compliance front, tightening U.S.-EU export controls on critical packaging materials—combined with geopolitical volatility in Taiwan, China and South Korea—are compelling OEMs to diversify supply chains, likely raising operational costs by 15–20%. Competitively, ASE and Amkor may preemptively lock in equipment capacity, squeezing smaller OSATs. Over the next 18 months, packaging bottlenecks will spread from AI chips to industrial control applications, creating structural shortages—not just a cyclical rebound, but a strategic realignment driven by technical barriers and supply chain resilience.