As the demand for high-performance artificial intelligence (AI) chips grows dramatically, the back-end process technology for assembling various semiconductors and testing the functionality of such chips has become more important than ever. Therefore, leading contract chip manufacturers such as TSMC, Samsung Electronics and SK Hynix are going all out to advance and secure advanced technology in chip packaging.
HanaMicron is South Korea's top back-end process company and an outsourced semiconductor assembly and test (OSAT) company.
The company is currently developing a 2.5D packaging technology that can horizontally assemble different types of artificial intelligence (AI) chips, such as high-bandwidth memory (HBM). The company's CEO Lee Dong-cheol recently said: "We place our future on the advanced 2.5D packaging technology of HBM and other artificial intelligence chips."
He said that the chip packaging technology currently being developed is crucial for the production of artificial intelligence chips, such as Nvidia's H100 artificial intelligence accelerator.
He also pointed out that TSMC has developed 2.5D packaging technology for Nvidia H100. Samsung and SK Hynix and some back-end companies are also developing. His company has also produced prototypes, but it will take some time to enter the full commercialization stage.
seal upPack——next battlefield
Packaging places the chip in a protective case, prevents corrosion, and provides an interface to assemble and connect the produced chips.
Leading foundries such as TSMC, Samsung and Intel are competing fiercely for advanced packaging technologies.
Packaging technology can improve semiconductor performance without requiring ultra-fine processing to shrink nanometer dimensions, which is technically challenging and requires more time.
As generative AI such as ChatGPT develops, demand for such technology is increasing rapidly, requiring semiconductors that can process large amounts of data quickly.
According to forecasts by consulting firm Yole Intelligence, the global chip packaging market (including 2.5D and more advanced 3D packaging) will grow from US$44.3 billion in 2022 to US$78.6 billion in 2028.
HanaMicron’s Vietnam operations
Founded in August 2001, HanaMicron has production facilities in South Korea, Vietnam and Brazil, and conducts overseas sales operations in the United States, Vietnam and Brazil.
It provides packaging services and handles the entire process from chip packaging to module testing. The company's customers include Samsung, SK Hynix and NXP Semiconductors.
The company is currently vigorously expanding its business in Vietnam.
Since establishing a company in Bac Ninh Province in 2016 to enter the Southeast Asian market, HanaMicron has invested a total of 700 billion won (approximately US$525 million), and its current monthly output of packaged chips has reached 50 million pieces. The company plans to increase monthly production to 200 million units by 2025, and expects sales from its Vietnam operations to soon reach one trillion won.
Memory chip packaging accounts for 70% of the company's sales revenue, while packaging of system chips such as central processing units, application processors, fingerprint recognition sensors and automotive chips accounts for the rest.
LeeDong-cheol said: "Our ultimate goal is to increase the proportion of system chips to 50% because they are less affected by market ups and downs."
With the storage market slowing down over the past few years, the company's operating profit is expected to be 66.3 billion won in 2023, down 36% from the previous year, according to financial research firm FnGuide.
Lee Dong-cheol said performance is expected to improve in 2024 given growing demand for advanced chips from electronics manufacturers and artificial intelligence equipment makers.