Daeduck Electronics will invest 70 billion won to expand its production capacity of flip chip ball grid array (FC-BGA), TheElec has learned.
It follows the company’s 90 billion won investment into the business last year. With the additional investment, Daeduck will have spend 160 billion won in FC-BGA.
The additional investment will expand the company’s FC-BGA production capacity from 200 billion won to mid-300 billion won.
FC-BGA are wireless semiconductor package substrates. They are used to send electric signals between the semiconductor and main board. It is a must-have component for PC CPUs.
Only around ten companies manufacture FC-BGA, including Ibiden, Shinko Denki and Samsung Electro-Mechanics.
Daeduck is attempting to manufacture FC-BGA non-memory chips used for server, data center, autonomous driving and artificial intelligence.
A Daeduck spokesperson said it has received requests from multiple global customers to develop FC-BGA. Many of them were approved for production by its customers, they said.
Once the company completes its expansion of production facilities, customers will place orders for FC-BGA, the spokesperson said.
Daeduck currently manufactures FC-BGA at its semiconductor package substrate factory at Sihwa, Gyeonggi Province.
The 70 billion won will be spend to build a new factory at Ansan in the same province. Daeduck is designing the new factory using modified semi additive process equipment that it previously used to manufacture its high density interconnection boards for smartphones. The company exited the HDI business in the second quarter of last year.
Daeduck is expecting sales to occur from FC-BGA in earnest starting in 2022.
The firm is planning to manufacture 1 trillion won worth of semiconductor packages, which includes FC-BGA, after that year. FC-BGA will contribute mid-300 billion won to that.
The company currently earns around 80 billion won in sales from its non-memory semiconductor packages. The Daeduck spokesperson said the company expects sales of over 200 billion won from FC-BGA in 2023.
It will continue its focus on the semiconductor become a company known to specialize in the sector, they added.
