Samsung Electro-Mechanics "Supply to Big Tech" vs LG Innotek "New Technology Development"... 'Substrate War'

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Samsung Electro-Mechanics supplies FC-BGA for AI accelerators to big tech companies. LG Innotek develops technology to reduce the size of mobile substrates by 20%.

(Seoul=UD News) By Park Joo-pyung = Samsung Electro-Materials (009150) and LG Innotek (011070) are receiving attention as they have achieved significant results in their semiconductor package substrate businesses. Samsung Electro-Materials has newly supplied 'Flip Chip Ball Grid Array (FC-BGA) semiconductor substrates' for AI accelerators to major North American tech companies, while LG Innotek has developed new technology that reduces the size of substrates used in mobile devices by 20%, addressing the key challenge of miniaturization.

In particular, as LG Innotek has also entered the development of FC-BGA and glass substrates following Samsung Electro-Mechanics, competition is expected to intensify in the future. Samsung Electro-Mechanics and LG Innotek have been competing in the mobile device component sector, such as camera modules, up until now.

Samsung Electro-Mechanics achieves first supply of FC-BGA for AI accelerators

According to the industry on the 28th, Samsung Electro-Mechanics recently began mass-producing FC-BGA semiconductor substrates for AI accelerators and signed supply contracts with major North American tech companies.

A semiconductor package substrate is a product that connects high-density semiconductor chips to the motherboard, transmitting electrical signals and power. As semiconductor performance increases, the substrate requires advanced technologies such as △increased internal layer count, △implementation of fine circuits, △precise alignment between layers, and △thinning.

Samsung Electro-Mechanics has supplied FC-BGA this time, which flips the semiconductor chip (Flip Chip) to directly connect it to the substrate and arranges terminals in a ball grid pattern underneath. This enables high-density and high-speed signal processing, stable power supply, and efficient heat dissipation, making it a high-performance semiconductor package substrate.

Samsung Electro-Mechanics has been supplying FC-BGA for PCs and servers to customers, but supplying FC-BGA for AI accelerators is a first. This is expected to accelerate competition with leading companies in Taiwan and Japan. LG Innotek develops technology to reduce size of mobile semiconductor substrates by 20%

LG Innotek has also successfully developed new technology that can reduce the size of mobile semiconductor substrates, which are crucial for slimming down, by up to 20% compared to existing sizes. LG Innotek leads globally in the substrate sector for connecting RF-SiP (a communication semiconductor component that combines semiconductor chips, power amplifiers, filters, and more into one package) to the mainboard.

Semiconductor substrates are connected to the motherboard through solder balls (solder balls), which exchange electrical signals. Previously, solder balls were directly attached to the semiconductor substrate to connect it to the motherboard. To ensure stable bonding, the solder ball size had to be large, and due to its spherical structure, it occupied a wide space, making it difficult to increase circuit density. LG Innotek solved this by first erecting copper pillars on the semiconductor substrate and then placing smaller solder balls on top of them.

By applying this technology, it is possible to create semiconductor substrates that are up to 20% smaller while achieving the same performance as existing ones. This allows smartphone manufacturers to increase design flexibility and slim down their devices.

In addition, smartphone overheating can also be improved. The copper used in the copper post has a thermal conductivity more than 7 times higher than lead, which allows it to more quickly dissipate heat generated from semiconductor packages to the outside.

LG Innotek plans to strengthen its market advantage by applying new technologies to mobile semiconductor substrates.

The flame-retardant FC-BGA competition... The rise of glass substrates is also on the horizon.

While LG Innotek has not directly competed with Samsung Electro-Mechanics in producing mobile communication semiconductor substrates, it is expected that the future competition will expand as LG Innotek is actively entering the high-value FC-BGA market.

LG Innotek acquired the Gumi 4 Factory, which has a total floor area of 230,000 square meters, from LG Electronics in December 2022. The company invested 4.13 billion won to transform it into a smart factory for mass-producing FC-BGA. In December last year, it began mass production to supply FC-BGA for PCs to global big tech customers.

LG Innotek, although late to the market entry, plans to maximize yield and productivity through AI-based smart factories as its weapon, thereby securing market share. In the future, it plans to expand its lineup to include AI server products and automotive FC-BGA.

The glass substrate is also a product that both companies are developing as a future revenue source. The glass substrate uses glass as the raw material instead of plastic, making it extremely flat and thermally stable, which maximizes semiconductor integration and performance. Additionally, its excellent electrical characteristics make it an optimized next-generation substrate for high-performance computing and communication semiconductors.

Samsung Electro-Mechanics has started operating a pilot line for glass substrates in the second quarter of this year and is promoting prototype products to global big tech companies. LG InnoTek, a relatively latecomer, plans to bring in glass substrate equipment in October this year and will begin its own development.

jupy@news1.kr

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