Leadframe makers rebuilding inventory to meet demand for wireless chips

Tight supply of leadframes used in quad-flat-pack-no lead (QFN) packaging for network and communication chips is expected to ease at the end of May 2009, as Japan-based material suppliers have begun to rebuild inventory levels after seeing increased demand from the China market, according to sources at Taiwan's IC backend suppliers.

Taiwan IC testing and packaging companies have seen average utilization rates increase to 75-80%, but have no plans to increase capacity currently since demand for the third quarter is still unclear, added the sources.