LG Electronics is aggressively entering the advanced semiconductor packaging equipment market to meet the surging demand driven by AI. The company plans to gradually localize production of AI semiconductors, high-bandwidth memory (HBM), and related process equipment in South Korea, aiming to expand its business footprint.
According to ET News, citing industry sources, Park Myung-Joo, director of Advanced Equipment Research Institute at LG Production Research Institute (LG PRI), recently stated at a seminar that with the rising importance of advanced packaging, the backend process equipment market is expected to grow to KRW43 trillion (US$30 billion) by 2030. He stressed that LG will continue focusing on developing process equipment to meet new technology demands.
Rather than competing directly with established process equipment firms, LG adopts a strategy of strategic partnerships with external companies and institutions to concentrate resources on next-generation semiconductor equipment development, enhancing efficiency through division of labor. Park also revealed that some semiconductor inspection equipment has already been delivered to customers.
According to Korea JoongAng Daily, LG confirmed that its PRI has begun development of a hybrid bonder for next-generation HBM. Hybrid bonding enables direct copper-to-copper bonding (or copper/dielectric bonding) in wafer-level stack packaging—offering thinner stacks, higher throughput, and better performance than conventional thermo-compression (TC) bonding.
The target for the mass production of hybrid bonder equipment is cited as 2028; whether demand, yield, customer qualification, and ecosystem will align remains to be seen, Alphabiz reports.
Additionally, LG PRI is developing glass substrate-related equipment attracting attention for its next-generation potential, including ultra-precise TGV laser equipment for signal connection processing and corresponding automated optical inspection (AOI) systems.
Given the historically overwhelming dominance of foreign companies in South Korea's semiconductor equipment market, LG's entry as a major domestic player pushing localization carries significant implications, drawing considerable attention to its semiconductor equipment initiatives.
Article edited by Jack Wu
