According To The News, Samsung Expanded Suzhou's Advanced Packaging Production Capacity And Strengthened Semiconductor Packaging

On November 21, according to Business Korea on Tuesday, industry sources said that Samsung Electronics is expanding domestic and foreign investment to strengthen its advanced semiconductor packaging business. Packaging technology determines how the semiconductor chip fits into the target device, and the importance of the internal packaging process is increasing for next-generation high-bandwidth storage (HBM) products such as HBM4. To this end, Samsung is focusing on improving its packaging capabilities to stay ahead of the curve and close the gap with SK Hynix.

According to industry sources, Samsung Electronics signed a contract worth about 20 billion won (about 104 million yuan at present) in the third quarter of this year to purchase and install semiconductor equipment for its factory in Suzhou, China, to expand the production capacity of the base.

The Suzhou plant is Samsung's only overseas test and packaging production base, which is believed to help improve the packaging process level and production efficiency. During the deal, Li Zhengsan, vice president of the Global Manufacturing and Infrastructure Test & Packaging Center, was appointed head of the Suzhou plant, a position that had been vacant for nearly a year.

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In the domestic market, Samsung is also actively expanding its packaging facilities. The company recently signed agreements with Chungcheongnam-do and Cheonan City to build a state-of-the-art HBM packaging facility in Cheonan, covering an area of 280,000 square meters, which is expected to be completed in 2027. In addition, Samsung is building an Advanced Packaging Lab (APL) in Yokohama, Japan, focusing on research and development of next-generation packaging technology. The project will focus on supporting high-value chip applications such as HBM, artificial intelligence (AI) and 5G technologies.

This series of expansions is seen as a key strategy for Samsung to close the technology gap with SK hynix. HBM4 packaging is shifting from the traditional horizontal 2.5D approach to vertical 3D stacking, while Samsung is developing advanced technologies such as hybrid bonding to meet the increasingly individual needs of customers. "Samsung hopes to achieve a breakthrough with the 6th generation HBM, and will continue to lead in packaging technology and production capacity in the future," an industry insider noted. "