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IC backend service company Advanced Semiconductor Engineering (ASE) expects its revenues to grow 6-8% sequentially in the fourth quarter of 2013, but will also see its gross margin drop to 18-19% in the quarter from 20.4% posted in the prior quarter.
Sales of IC ATM (assembly, testing and materials) revenues are expected to drop 0-3% sequentially in the fourth quarter, but the EMS business unit will see its sales up 25% during the same period.
ASE also expects its SiP (system-in-package) packaging business to expand significantly in the fourth quarter, to account for 10% of its total revenues in the quarter. Furthermore, SiP packaging will continue to serve as a growth driver for ASE in 2014, the company said.
ASE will also continue to commit new investments in the SiP packaging segment in the next few years, added the company.
ASE has begun shipping its low-cost flip-chip (FC) substrates to clients, pushing sales of semiconductor materials to 10% of its total revenues in the third quarter. The company will also promote its embedded substrates soon.