Investing KRW 20.6 billion in Ulsan plant expansion
Responding to demand for high value-added semiconductor substrates
DUKSAN Hi-Metal is investing KRW 20.6 billion to expand the micro solder ball (MSB) plant in the Ulsan. This decision was made in order to respond to the increasing demand for high-value semiconductor substrate, flip chip ball grid array (FC-BGA).
DUKSAN Hi-Metal exchanged a memorandum of understanding (MOU) with Ulsan City to invest in MSB expansion in the Ulsan plant in Ulsan City Hall on the 7th. This plant will produce MSB, a core material for semiconductor substrates. As the investment is confirmed, DUKSAN Hi-Metal will more than double the existing production capacity of 1.4 billion K per month.
DUKSAN Hi-Metal has the largest market share in the global MSB market. By localizing the solder balls that has been monopolized by Japan, they took the second place in the solder ball market share and the first place in the MSB market share. Solder balls are materials that connect semiconductor chips and substrates and transmit electrical signals.
MSB is a high-value-added product that reduces solder balls to a subminiature·ultra-precision size of less than 130 micron. It is used in high-performance semiconductors such as central processing unit (CPU) and graphic processing unit (GPU) made by Intel, AMD, and Nvidia. As the use of FC-BGA increases in the electric vehicle, artificial intelligence (AI) and data center markets, the plant also has to be expanded. Global component companies such as Samsung Electro-Mechanics, LG Innotek, and DAEDUCK ELECTRONICS are also strengthening their investments.
DUKSAN Hi-Metal is responding to semiconductor demand through investment in MSB expansion. DUKSAN Hi-Metal's MSB expansion will start this month and be completed by January 2023. The facilities will be installed sequentially until the second half of 2024.
DUKSAN Hi-Metal is a representative local company of Ulsan. Since they rooted their heavy industry division in Ulsan in 1999, they have been expanding direct and indirect job creation through investment and expansion of MSB. It is expected that 100 new jobs will be created through the expansion of the Ulsan plant.
Vice president Soo-hoon Lee said, “With global companies producing FC-BGAs competing for facility investment, demand of MSB surged, and we decided to invest in production facilities expansion to respond to the growing demand. Through our investment, we want to solidify our position as leading semiconductor solder ball company and expecting to help our company to grow even more.”
Major of Ulsan, Doo-gyeom Kim, said, “DUKSAN Hi-Metal is a representative local company that has led the semiconductor material industry through challenges and innovation in manufacturing-oriented city, Ulsan. Since major businesses of Ulsan are future food and semiconductor as a new growth engine, we will spare no effort in our continued interest and support to make them grow.”
By Staff Reporter Ji-woong Kim jw0316@etnews.com