Abstract
In semiconductor industry, IC assembly technologies have been significantly improved in the recent years. A lot of high-end devices convert to Flip Chip Packaging and low-end devices to Wafer Level Packaging (WLP). There are two major reasons for this kind of conversion. The first one is Au price raising issue that has seriously impacted the cost of the wire bond package. The other one is the demanding of high-speed transmission for handsets and wireless communication devices. To expand the WLP capacity is a very difficult decision, because the capital expenditure is much higher than traditional package. Furthermore, WLP capacity is unique and cannot share with traditional package. However, there is a need for an effective and easy-to-use decision analysis methodology for help top managers in high-tech industries to make such critical decisions. Therefore, this thesis aims to fill the gap by developing a Capacity Expansion Decision Analysis Model to assist top managers in making the right decisions for WLP capacity expansion. An empirical study was conducted and the results showed the practical viability of this approach.