Investment in the non-memory semiconductor market has paid off
Competing with 10 global companies including Samsung Electro-Mechanics
The market prospect is bright as non-face-to-face demand increases
Daeduck Electronics will start operation of a new Flip Chip Ball Grid Array (FC-BGA) factory with an investment of 90 billion KRW. FC-BGA is a board that connects semiconductor chips and boards with ball-shaped bumps, and is a business that Daeduck Electronics is intensively fostering as a growth engine. The investment in the past is finally paying off.
Daeduck Electronics announced on the 18th that it had completed the construction of a new FC-BGA factory and started shipment. They explained that the first product was recently produced and supplied to a customer on a line that was built at a cost of 90 billion KRW in July last year.
FC-BGA is a substrate mainly used for non-memory semiconductors. It is applied to system semiconductors installed in high-performance systems such as servers, data centers, and electric vehicles. As a barrier to entry into this technology, only about 10 companies worldwide such as Ibiden, Shinko Denki, and Samsung Electro-Mechanics are mass-producing them.
Daeduck Electronics prepared FC-BGA to respond to the expansion of the non-memory semiconductor market and to convert high value-added business. Some FC-BGA lines were built within the existing plant, and a new plant was established with a large investment. They also made usage of high density interconnect (HDI) factory that was withdrawn in the second quarter of last year. An official from Daeduck Electronics said, "We were able to ship FC-BGA without any setback from facility installation to customer approval."
This FC-BGA shipment draws attention as it heralds the successful operation of the main production and the growth of new businesses. Semiconductors around the world are in short supply due to strong demand. In particular, the shortage of non-memory semiconductors is deepening due to the revitalization of the non-face-to-face economy due to COVID-19. It is also predicted that the supply shortage will continue for next 2 years.
The reason for the growth of non-memory semiconductors is an increase in substrate demand in general. Daeduck Electronics also decided to make an additional investment in March of this year due to the favorable market forecast. Before the new plant was even completed, it was decided to invest 70 billion KRW in FC-BGA expansion. According to the industry, it is known that major manufacturers are reorganizing the FC-BGA supply chain due to the lack of global semiconductor supply.
Daeduck Electronics plans to strengthen its position in the market by strengthening its business competitiveness. Young-hwan Shin, CEO of Daeduck Electronics, said, "We will achieve annual sales of 300 billion KRW from new products by 2024 while repaying customers' trust with quality products and accelerating growth based on technology."
Daeduck Electronics semiconductor substrate business has been centered on memory so far, but it is planning to leap forward as a semiconductor substrate company with a lineup from memory to non-memory.
By Staff Reporter Gun-il Yun (benyun@etnews.com)