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Lacking customer support, Samsung will re-evaluate the 200 billion won BLOWLP production line construction plan

Abstract: On January 28, Samsung originally planned to invest about 200 billion won (about 1.052 billion yuan) in Cheonan Semiconductor Fab to establish an advanced packaging wafer-level fan-out packaging (FOWLP) production line for the production of its Exynos series mobile processors. But the plan was questioned by its own top brass and faced a reassessment.

Lacking customer support, Samsung will re-evaluate the 200 billion won BLOWLP production line construction plan

On January 28, Samsung originally planned to invest about 200 billion won (about 1.052 billion yuan) in Cheonan Semiconductor Fab to establish an advanced packaging wafer-level fan-out packaging (FOWLP) production line for its Exynos series mobile processors. But the plan was questioned by its own top brass and faced a reassessment.

South Korean media "TheElec" reported that sources pointed out that Kyung Kye-hyun, general manager and general manager of Samsung's electronic chip division, Chang Sung-jin, director and executive deputy general manager of the test system packaging department, and Choi Kyong-se, executive deputy general manager of the packaging development department, recently attended a high-level meeting of Samsung, and the top management expressed doubts about the investment plan.

Executives pointed out that even if an advanced packaging FLYLP production line is established, the production capacity will not be fully utilized. The reason is that Samsung does not have reliable customers, and the demand cannot be guaranteed. At this stage, Samsung's main potential customers, Samsung Mobile and mobile processor manufacturer Qualcomm also reacted coldly to the plan. These customers believe that using the traditional PoP package can improve processor performance, and the overall cost is lower than the FOWLLP package, resulting in little interest.

The report quoted people familiar with the matter as saying that if the investment plan of the advanced packaging FOWLP production line continues, it should be used for the follow-up product of the recently launched Exynos 2200 action processor, but the existing PLP production line of the Samsung Tianan factory is used for the galaxy Watch series and other smart watch chip packaging, which has not reached Samsung's expectations. However, people familiar with the matter pointed out that in the long run, Samsung may continue to develop the advanced package FOWLLP production line.

Editor: Xin Zhixun - Lin Zi Source: TheElec

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