Increased demand and revenue for GPTC, accompanied by enhanced order transparency
In a recent announcement, Grand Process Technology Corp (GPTC) revealed that they are encountering difficulties in meeting the surging demand for their CoWoS (chip-on-wafer-on-substrate) capacity. This news comes as the company continues to supply advanced chip packaging equipment to major clients such as Taiwan Semiconductor Manufacturing Co (TSMC) and ASE Technology Holding Co, the world's largest chip testing and packaging service provider.
GPTC, which holds approximately 75% of the CoWoS wet process equipment market in Taiwan, has been experiencing extended lead times for key equipment, resulting in longer wait times for customers. The improvement in demand is primarily due to the artificial intelligence (AI) boom, which is driving the need for miniaturized, high-bandwidth, and energy-efficient semiconductor devices in various sectors, including consumer electronics, telecommunications, automotive, and IoT.
The usual delivery period for GPTC's equipment is six to nine months, but the current market demand for advanced packaging equipment is strong and growing significantly through 2025 and beyond. This growth is expected to continue, with the advanced packaging sector rebounding after a decline in 2023, and projected market growth of approximately 19.2% in 2025.
GPTC's product range includes wet benches, wet cleaning systems, and single wafer set processing systems. The company reported a 54% year-on-year increase in revenue for the first half of the year, reaching NT$2.9 billion (US$98.2 million). GPTC expressed confidence in achieving another record-high revenue this year, surpassing last year's record of NT$4.07 billion.
Despite these challenges, GPTC remains optimistic about the future. The company's confidence has grown as US tariff policies have become clearer, and they are well-positioned to benefit from the rising adoption of AI, IoT, and 5G technologies, the expansion of OSAT (Outsourced Semiconductor Assembly and Test) services, and the trend toward smaller, high-performance packages like CoWoS and system-in-package (SiP) which require precision equipment.
The advanced packaging equipment market is forecasted to reach over USD 9.2 billion by 2033 with a CAGR of approximately 8.4% from 2025 onward, indicating sustained long-term growth prospects for GPTC and peers operating in this segment.
[1] Advanced Packaging Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2020 - 2033
[2] Flip Chip Market Size, Share & Trends Analysis Report By Product Type, By Application, By Regional Outlook And Segment Forecasts, 2019 - 2026
[3] Fan-Out Wafer-Level Packaging (FO-WLP) Market Size, Share & Trends Analysis Report By Product Type, By Application, By Regional Outlook And Segment Forecasts, 2019 - 2026
- The surge in demand for CoWoS capacity at Grand Process Technology Corporation (GPTC) is attributed to the AI boom, which necessitates miniaturized, high-bandwidth, and energy-efficient semiconductor devices in various sectors, including technology like artificial intelligence, IoT, and 5G.
- The advancement in technology, particularly the increased adoption of AI, IoT, and 5G technologies, the expansion of OSAT services, and the trend towards smaller, high-performance packages like CoWoS and system-in-package (SiP), all require precision equipment, making GPTC well-positioned to prosper in the long term.
