[Peace&Chips] Semiconductor Savior 'Packaging'... From Talent Acquisition to New Technology Adoption

Packaging Sector to Boost Semiconductor Performance
Identified as Key Industry Issue for National Assembly Audit

Samsung and Hynix Focus on Securing Packaging Talent
Will TSMC Launch Packaging Factory in the US?
Intel Announces Introduction of Glass Substrates for Packaging

Editor's NoteSemiconductors, often called the rice of modern industry. Although it's a term we hear every day, it's hard to explain when asked. Peace & Chips will make the complex concepts and overall flow of the semiconductor industry easy to digest for you. Just place your spoon on it.

"Development of post-wafer production processes (testing, packaging) technology is urgent."

The National Assembly Legislative Research Office stated this in its '2023 National Audit Issue Analysis' report released last month. This report outlines issues that each standing committee of the National Assembly should review ahead of this year's National Audit scheduled for next month. Among the issues for the Industry, Trade, Small and Medium Enterprises and Startups Committee related to the industrial sector, "Strengthening the global competitiveness of the semiconductor industry" was presented. As a measure to achieve this, the development of post-process technology was highlighted.

Particularly, emphasis was placed on securing packaging technology within the post-process. The report stated, "The global packaging market is expected to grow from $48.8 billion in 2020 at an annual rate of 5%, reaching $57.4 billion by 2023," and added, "As demand in the advanced packaging sector is expected to increase, packaging technology competitiveness must be actively secured through cooperation between large and small-to-medium enterprises."

Inside view of the production line at Samsung Electronics Pyeongtaek Campus / Photo by Samsung Electronics

Packaging refers to the process of cutting the chip base (die), which is completed through several processes from the silicon wafer, and packaging it so that it can be used in the device where it will be mounted. Recently, packaging has been recognized as a core area that enhances semiconductor performance beyond simple packaging. As there are limits to developing front-end process technology that draws fine circuits on wafers to improve performance, attempts to maximize performance by bundling multiple semiconductor chips during the packaging process have emerged as an alternative.

As a result, the semiconductor industry is busy enhancing packaging technology capabilities. Samsung Electronics and SK Hynix have started securing packaging talent. Both companies are currently conducting procedures to recruit new employees for the second half of the year, including package development as one of the recruitment fields. In the case of SK Hynix, they are recruiting personnel in research and development (R&D) processes for next-generation technology development and mass production application related to packaging products.

Taiwanese foundry company TSMC is reportedly considering building an advanced packaging factory in the United States. Following plans to build two factories in Arizona, there is a possibility of establishing an additional packaging factory. Katie Hobbs, Governor of Arizona, made related remarks at an event held in Taiwan. However, TSMC has not yet made any separate statements regarding this matter.

Intel's glass substrate test panel on display / Photo by Intel

Intel has announced technological innovation to enhance its packaging capabilities. It recently revealed plans to introduce glass-based semiconductor substrates by 2030. Semiconductor substrates are components attached under the die to enable semiconductor chips to operate. Previously, plastic substrates were used, but as packaging technology has advanced, various limitations have arisen, leading to the decision to replace them with glass substrates.

Intel believes that since the surface of glass substrates is flat and can be made thin, it offers significant advantages in reducing packaging size while improving performance. They even described the introduction of glass substrates as "an essential step to showcase next-generation semiconductors." As packaging technology becomes a key business competitiveness factor, we can expect more such innovative attempts in the future.

This article is from [Peace & Chips], published weekly by Asia Economy. By clicking subscribe, you can receive articles for free.

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