Both Samsung and SK Hynix Say "Packaging Is Important"... Semiconductor Industry Putting Effort into It

[Asia Economy Reporter Jeong Hyunjin] "It is now an era where future market dominance cannot be secured by chip technology alone without advancements in packaging technology."

Semiconductor companies are focusing on packaging, which is a post-processing step. Semiconductor manufacturing processes are divided into front-end wafer processing and back-end packaging and testing operations. Back-end technology is recognized as a key technology that enhances semiconductor performance and production efficiency.

According to the industry on the 22nd, SK Hynix is making efforts this year to expand its silicon through via (TSV) product lineup, one of the back-end technologies, and secure profitability. SK Hynix was the first in the industry to successfully develop ultra-high-speed memory HBM based on TSV technology in 2013, mass-produced 3DS products developed for high-capacity applications, and developed HBM2E in 2019, entering mass production within 10 months.

The packaging process electrically connects the chip to the outside, protects it from external environments, and controls the efficient dissipation of heat generated by the semiconductor. As semiconductor technology develops, packaging technology must also rapidly evolve to better realize semiconductor performance.

Park Jin-woo, PL of SK Hynix’s PKG development organization, said, "The core of TSV technology lies in how quickly and cost-competitively a stable stacked structure can be implemented." He added, "Currently, TSV technology is applied only to HBM and 3DS products, but if high processing speeds are required in mobile and NAND products, it can be expanded to TSV products. We are proactively working to secure cost competitiveness in preparation for this."

Samsung Electronics is also accelerating the development of next-generation packaging technology. Samsung Electronics Vice Chairman Lee Jae-yong visited the Samsung Electronics Onyang Campus, where the semiconductor packaging research center is located, twice in 2019 and last year to inspect next-generation semiconductor packaging technology, demonstrating the company’s commitment to packaging technology.

Earlier this month, Samsung Electronics announced the development of ‘iCube 4,’ a next-generation packaging technology. It is a proprietary structure that integrates a logic chip and four HBM chips into a single package, which can be used in high-performance computing (HPC), artificial intelligence (AI), and cloud services in the future. Previously, logic chips and memory chips were packaged separately, but this technology combines them to reduce area and increase data speed. Kang Moon-soo, Executive Vice President of Samsung Electronics Foundry Business Division’s Market Strategy Team, said, "The importance of next-generation packaging technology is increasing, especially in the high-performance computing field. Based on the commercialization competitiveness of ‘iCube 4,’ we will develop and introduce new technologies that mount 6 or 8 HBMs to the market."

Semiconductor companies putting effort into this are not limited to domestic firms. TSMC and Intel are doing the same. TSMC is currently pushing to establish a research and development (R&D) center in Japan, where intensive development of semiconductor back-end technology is expected. Intel is investing $3.5 billion this year to build a semiconductor packaging facility in New Mexico, USA, which will begin operations in the second half of next year.

Meanwhile, according to market research firm TrendForce, the top 10 global packaging and testing companies recorded sales of $7.17 billion in the first quarter, a 21.5% increase compared to the same period last year. This is analyzed to be due to a significant increase in semiconductor demand and these companies raising prices related to back-end processes, resulting in substantial revenue growth.

This content was produced with the assistance of AI translation services.