Outsourced semiconductor assembly and test (OSAT) firm LB Semicon is planning to build a new chip test line next year.
The company will spend between 150 billion won to 160 billion won on equipment and will start building the line at its Anseong facility in January next year, people familiar with the matter said.
The new line will be an eight-story building and will be designed to house heavier equipment, which will increase capacity.
The line is expected to start operation in 2024 and will be used to test SoC, application processors and CMOS image sensors.
LB Semicon is attempting to reduce its reliance on its current main business which is display driver IC bumping. It is also expanding into the fan-out wafer level package (FOWLP) sector to this end.
The company’s recent expansion is aimed at reacting to expected demand increase from its main customer Samsung, which is spending heavily on expanding its logic businesses.
Meanwhile, LB Semicon is also planning to expand its Pyeongtaek facility for FOWLP.