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Prodded by their automobile clients to hedge their bets against China global Taiwanese-headquartered outsourced semiconductor assembly and test companies (OSAT) are scouting for other Asian destinations to shift part of their production. Their favourite alternatives: Malaysia, Vietnam and the Philippines. Note, India is missing from that list. And this is despite an attractive financial incentive scheme for OSAT players.
The reason, said a senior executive of a US chip company who had a meeting in Taiwan just a few weeks ago, is that “they want more predictability in government policy because they plan to put in big money.” OSAT players,
