LB Semicon is expected to test image sensors and application processor of customer Samsung Electronics in scale starting in May, TheElec has learned.
The chip back-end processing firm begin testing the initial stock of chips in March.
New testing facility made to handle Samsung’s order will operate at a rate 60% higher than previously beginning in May.
This will allow LB Semicon to handle more volume of image sensors and APs.
The new facility was built starting in September last year at its plant in Ansung, with 58.1 billion won.
Firm put in the final equipment for use at the facility in March, two months earlier than planned.
Sales from testing of CIS (CMOS image sensor) were small in March, but the company expected meaningful sales from the operation starting in May, a LB Semicon spokesperson said.
Korea Investment & Securities expect LB Semicon to secure 20 billion won in sales from its CIS and AP testing business.
According to the securities firm, in the second quarter, the company is expected to record 129.8 billion won in sales and 13.7 billion won in operating income, a jump of 22% and 69%, respectively, from the same time period a year ago.
LB Semicon had previously relied on LX Semicon (previously Silicon Works) and Magnachip, which supply display driver IC to Samsung Display and LG Display, for its sales.
The company has been working to rely its reliance on display driver IC and power management chips for its sales. Thanks to its efforts, it was named a secondary vendor for CIS testing by Samsung Electronics in the first half of 2020.
The order for CIS testing is expected to offset the lackluster performance of its power management IC operation. Samsung is the foundry for the chips but the tech giant shutdown its Austin plant for a month.