Daeduck Electronics has expanded its production of flip chip–ball grid array (FC-BGA) for semiconductors as of last month, the company said on Wednesday.
FC-BGA is a semiconductor package board without a wire. It sens electric signal between the chip and the main board. It is used in PC CPUs.
FC-BGA, a premium printed circuit board, is also produced by Ibiden and Shinko Electric Industries of Japan as well as Samsung Electro-Mechanics.
Daeduck said it plans to supply the arrays for use in servers, data centers, autonomous driving chips and artificial intelligence (AI) chips.
Multiple global customers has requested it develop FC-BGA, the Korean company said.
They will first applied to an AI-applied display panel and large capacity solid state-drive (SSD) made by customers, it said.
Once the dedicated factory for the arrays are complete, it will increase their production rate dependent on customer orders, Daeduck said.
The Korean board maker current produces its FC-BGAs at is exiting semiconductor package board factory at Shihwa, Gyeonggi Province, but is planning to build a new dedicated factory at Ansan city of the same province.
It announced in July that it will invest 90 billion won for the new factory. The new factory will use modified semi additive process equipment previously used for its now defunct high density interconnection board factory.
The new factory will go live in the second half of 2021.
Daeduck expects sales of FC-BGA to contribute to its earnings in a meaningful way starting in 2022.
It expects the new business to contribute between 150 billion won to 200 billion won to its total sales target of 900 billion won from the semiconductor package business.