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Canada News.Net
29-07-2025
- Business
- Canada News.Net
LG Electronics dives into semiconductor equipment, developing HBM chip for AI applications
Seoul [South Korea], July 29 (ANI): LG Electronics is making a strategic push into the semiconductor equipment sector, focusing on building key machinery for producing high-bandwidth memory (HBM) chips essential for AI applications, as reported by the Korea South Korean tech firm recently confirmed that its in-house research team, the Production Engineering Research Institute, has begun developing a hybrid bonder, an advanced chip packaging device. The machine is intended for use in manufacturing HBM chips, which are central to powering AI to the Korea Herald, a media report suggested that LG is targeting commercialisation by 2028, the company clarified that although hybrid bonder development is underway, no concrete timeline for mass production has been are a sensitive subject for LG. The company lost its chipmaking arm, LG Semicon, during the 1997 Asian financial crisis when the government ordered its merger with Hyundai Electronics, now known as SK hynix. Despite this setback, LG continued to invest in semiconductor-related R&D, designing custom chips for its products and recently teaming up with Canadian AI chip design firm Production Engineering Research Institute has also worked on HBM-related technologies and currently provides packaging and testing equipment. The company's renewed focus aligns with LG Group Chairman Koo Kwang-mo's broader AI strategy, as it aims to tap into the rapidly growing demand for AI believe LG has a shot at success. 'LG is entering the market because there's clear business potential,' said Lee Jong-hwan, a professor of system semiconductor engineering at Sangmyung University. 'HBM is expected to see continued growth because it is a critical component in AI chips, which are becoming dominant in the market.'Lee noted that the Production Engineering Research Institute has long handled equipment and systems related to mass production.'So they have strengths in developing related tools. That's why they are confident in commercialising this technology,' Lee said. (ANI)
Korea Herald
28-07-2025
- Business
- Korea Herald
Can LG break into AI chips game with hybrid bonder?
Tech giant bets on in-house expertise to take on rivals, but faces uncertain demand and scalability hurdles LG Electronics is eyeing a bold expansion in its semiconductor equipment operations, developing critical machinery for manufacturing the high-bandwidth memory chips that power AI innovation. The South Korean tech giant said it has kicked off development of a hybrid bonder at its in-house R&D unit, the Production Engineering Research Institute. A hybrid bonder is a kind of chip packaging machine, and LG wants to develop one for use in the HBM chips used in AI. The confirmation comes after a recent media report that LG aims to commercialize the equipment by 2028. An LG spokesperson, however, said that while it is currently conducting technical research on hybrid bonders for HBM, the timeline for mass production remains undecided. For LG, semiconductors are a sensitive topic. The company's chip aspirations suffered a devastating blow during the 1997 Asian financial crisis, when government-mandated restructuring stripped away its chipmaking business, LG Semicon, and merged it into Hyundai Electronics, which later became SK hynix. But LG kept the flame alive, holding onto crucial design capabilities and continuing to develop custom chips for its own products. The company has also partnered with Canada-based AI chip design company Tenstorrent to develop AI chips together. Its Production Engineering Research Institute also sells packaging and testing equipment and has conducted research on HBM technologies. This time, LG appears to be seeking a new growth engine by entering the red-hot AI chips sector, in line with LG Group Chair Koo Kwang-mo's AI vision. Observers say that because the hybrid bonder market is still in its early stages, LG could gain an edge if it succeeds in developing it. 'LG is entering the market because there's clear business potential,' said Lee Jong-hwan, a system semiconductor engineering professor at Sangmyung University. 'HBM is expected to see continued growth because it is a critical component in AI chips, which are becoming dominant in the market.' Lee noted that the Production Engineering Research Institute has long handled equipment and systems related to mass production. 'So they have strengths in developing related tools. That's why they are confident in commercializing this technology,' Lee said Why hybrid bonders matter HBM chips — used in AI accelerators like Nvidia's GPUs — are built by stacking multiple DRAM chips vertically, like a high-rise tower, allowing rapid and efficient data transfer. The key to their performance hinges on how precisely and securely these memory chips are bonded together. That's where advanced packaging tools like the hybrid bonder and the widely-used thermocompression bonder, or TC bonder, come in. These machines physically connect the chips to form a single, high-performance memory unit. The hybrid bonder LG is developing promises a significant advancement over conventional TC bonders. TC bonding uses heat and pressure to attach the semiconductor chips, relying on microscopic bumps to connect the stacked dies. In contrast, hybrid bonding eliminates the bumps entirely and enables direct chip-to-chip connections. This allows for thinner chip stacks, improved thermal performance and higher stacking capability, ultimately enabling the high-performance packaging needed for cutting-edge AI chips. Only a few global companies, such as Netherlands-based Besi and US-based Applied Materials, have developed hybrid bonders, and even those have yet to be commercialized for HBM. If LG succeeds, it could carve out a lucrative niche in a fast-growing market. The global hybrid bonding equipment market is expected to grow from $1.5 billion in 2024 to $3.2 billion by 2033, according to market research firm Verified Market Research. 'Hybrid bonding has a clear advantage,' said Lee. 'AI chips require higher data throughput as models become more complex and training workload increases. This leads to significant heat generation, and hybrid bonding offers a structural advantage in managing thermal issues.' 'But mass production capability will be critical, and once those manufacturing challenges are addressed, hybrid bonding will be more favorable for future HBMs.' Heated competition Samsung and SK hynix, the world's two largest memory chip makers, are mulling the use of hybrid bonding in their next-generation HBM products, such as HBM4E. As the number of DRAM layers in HBM increases to 16 or even 20, the use of TC bonding is expected to reach its limits. With the major HBM players eyeing the hybrid bonding technology, the equipment market will hinge on who can mass produce reliable and scalable equipment the fastest. Major equipment makers are entering the fray. Hanmi Semiconductor, the market leader in TC bonders, which supplies HBM leaders SK hynix and Micron, announced Friday that it will invest 100 billion won ($72.67 million) in hybrid bonding technology, with plans to release a hybrid bonder by the end of 2027. The company is constructing a hybrid bonder factory in Incheon, with the goal of completion in the second half of next year. Hanwha Semitech, which also supplies TC bonders to SK Hynix, is also ramping up efforts to develop hybrid bonding equipment. Then there's Applied Materials, which in April became the largest shareholder of Besi, a move expected to accelerate the development of hybrid bonding technology. Semes, the semiconductor equipment subsidiary of Samsung Electronics, is also reportedly developing a hybrid bonder that could be used for Samsung's HBM. "Since B2B equipment production and supply depend on customer demand, actual rollouts will be determined by market response and client needs," said an industry official on condition of anonymity. "Currently SK hynix gets its TC bonder from Hanmi Semiconductor and Hanwha Semitech, while Micron also sources from Hanmi. If Samsung decides to use tools from Semes, the key for LG is to make a marketable product and secure customers." sahn@
