The chip maker looks at FC-BGA and invests in a substrate factory

免責聲明：文章歸作者所有，轉載僅為分享和學習使用，不做任何商業用途！內容如有侵權，請聯系本部刪除！（手機微信同號13258996582）

In order to expand the semiconductor supply chain, it was revealed that communication chip maker Broadcom announced to have taken a stake in Japan's TOPPAN Holdings (formerly known as Toppan Printing) in Singapore's new FC-BGA substrate plant.

Nikkei News reported on the 9th, Broadcom is reported to have entered TOPPAN is expected to be put into production at the end of 2026 in Singapore FC-BGA substrate new plant, plans to expand the semiconductor supply chain. TOPPAN did not disclose the size of the investment in the above Singapore FC-BGA substrate plant, according to the relationship between the person pointed out that the investment amount of about 50 billion yen, and may increase to 100 billion yen, and the plant operating company initially by TOPPAN Holdings (formerly known as Toppan Printing) located in Singapore FC-BGA substrate new plant. The factory operating company was initially funded 100% by TOPPAN, but Broadcom recently funded, estimated TOPPAN shareholding of 50.1%, Broadcom 49.9%.

The report pointed out that TOPPAN is only using Japan's Niigata plant to produce FC-BGA substrate, and will cover the new plant in Singapore, mainly because Singapore is close to the back end of the professional packaging and testing foundry (OSAT) convergence of Taiwan, Malaysia and other places.

According to the French research firm Yole Intelligence pointed out that in 2028, the global IC substrate market size is expected to expand to 29 billion U.S. dollars, compared with the 2022 surge of 90%.

TOPPAN announced on 14 March that it will build a new FC-BGA substrate factory in Singapore to expand FC-BGA substrate production capacity, and the Singapore factory is expected to start production by the end of 2026.TOPPAN pointed out that the above new BGA factory will be assisted by Singapore's Economic Development Office and Broadcom.

TOPPAN said that with the accelerated digitization of society, the demand for FC-BGA substrates has expanded, and TOPPAN is currently expanding the FC-BGA substrate production capacity of its Niigata factory in Japan. However, in order to cope with the increase in demand in the future, and to judge the need for further expansion of production capacity, TOPPAN decided to build the above Singaporean plant, and to diversify the risks of geopolitics and natural disasters through the establishment of the dual-position production system, so as to construct a global supply system. To build a global supply system.

According to TOPPAN, it aims to increase its FC-BGA substrate production capacity to more than 2.5 times of the 2022 level by 2027.

FC-BGA battle, quietly started

Leading South Korean electronics parts maker LG Innotek Co. is supplying high-performance chip chips for AI devices to major global tech companies for the first time.

LG recently cleared the last hurdle to product supply by passing quality tests for AI chip chips, known as inverted) mounted chip ball grid arrays (FC-BGAs), owned by large tech firms, people familiar with the matter said in June this year. A source said the

The South Korean company will begin quickly supplying its FC-BGA products to unnamed major tech companies They said this is the first time LG has gained a customer since entering the chip packaging chip market in 2022. LG's FC-BGA motherboards will be used for graphics processing units (GPUs) in servers, the sources said.

FC-BGA is a packaged chip that transmits electrical signals and power by connecting a high-density semiconductor chip to the motherboard. It is primarily used for central processing units (CPUs) and GPUs that require high-performance and high-density circuit connections.

Multi-layer substrates such as FC-BGA are replacing generic substrates for AI, self-driving car computer server electronics as chipmakers turn to high-density circuit substrates containing more microcircuits to improve system performance.LG will close the market share gap with its bigger rivals.

LG Innotek will be able to close the market share gap with bigger rivals in the fast-growing FC-BGA market, analysts said.

Currently, there are only a few companies in the world such as Japan's IBIDEN, Japan's Emerging Electrical Industry Corporation, Taiwan's Xinxing Technology Corporation, Nanya Technology Corporation, South Korea's Samsung Electro-Mechanics Co. Ltd. and LG Innotek and Oxygen AT&S, etc. According to the Fuji Chimera Institute of Economic Research forecasts, the global market size share of FC-BGAs will be 8 billion USD in 2022, more than doubled, and 8 billion USD by 2022. billion to more than double and reach $16.4 billion by 2030. 

Samsung Electro-Mechanics began its packaging chip business in 1991, and its customers include Qualcomm, Intel and Apple.

In July, Samsung Electro-Mechanics said it would supply AMD with high-performance chip boards for hyperscale data centres.

Chip custody refers to Flip Chip Ball Grid Array (FC-BGA), and this is the first time Samsung Electro-Mechanics has officially confirmed the deal.

Hyperscale data centres are those with more than 100,000 servers running on ultra high-speed networks.

Demand for these hyperscale data centres is growing due to strong demand for artificial intelligence and cloud services.

Samsung Electro-Mechanics and AMD's data centre motherboards are 10 times larger than the FC-BGAs of conventional computers and have three times more layers to house CPUs and GPUs.

Samsung Electro-Mechanics says they have solved the warping problem and ensured high yields when chips are mounted onto the boards.

The company is likely to manufacture the boards at its plants in Busan, South Korea and Vietnam.

As previously reported by TheElec, the South Korean parts maker has been supplying server FC-BGAs to AMD since 2022.

Samsung Electro-Mechanics is new to the server FC-BGA space, a market dominated by Japanese rivals Ibiden and Shinko Denki.

With this deal, AMD will gain the muscle it needs to overtake Intel in the server CPU market.

Intel faced difficulties in securing FC-BGA supply lines in the early 2020s as it had already signed multi-billion dollar deals with Ibiden and Shinko Denki.

Apple sourced FC-BGAs from a limited number of suppliers as the chip packaging market was dominated by production technology.

---END---