Seoul [South Korea]July 29th (ANI): LG Electronics is making a strategic push into the semiconductor equipment sector, focusing on building key machines to produce high-bandwidth memory (HBM) chips, which are essential for AI applications, as reported by the Korean Herald.
A high-tech company in Korea recently confirmed that its in-house research team, the Production Engineering Research Institute, has begun developing a hybrid bonder, an advanced chip packaging device. The machine is intended to be used in the manufacture of HBM chips, which is the heart of the power of AI technology.
According to the South Korean Herald, a media report suggested that LG was targeting commercialization by 2028, but the company revealed that development of hybrid bonders is underway but no concrete timelines for mass production have been set.
Semiconductors are LG's sensitive subjects. The company lost its chip-making arm LG Semicon during the 1997 Asian financial crisis when the government ordered a merger with Hyundai Electronics, now known as SK Hynix.
Despite this set-off, LG continued to invest in semiconductor-related R&D, designed custom chips for its products, and recently collaborated with Canadian AI chip design company Tenstorrent.
LG's Production Engineering Laboratory is also working on HBM-related technologies, and currently offers packaging and testing equipment. The company's updated focus aligns with LG Group Chairman Koo Kwang-Mo's broader AI strategy. It aims to capitalize on the rapidly growing demand for AI chips.
Experts believe LG is successful. “LG is entering the market because of the clear business possibilities,” said Lee Jong-Hwan, professor of systems and semiconductor engineering at Sanngmyung University. “HBM is a key component of the market's dominant AI chips, so we are expected to see continuous growth.”
Lee noted that the Production Engineering Laboratory has been processing equipment and systems related to mass production for a long time.
“So they have strengths in developing relevant tools. So they are confident in the commercialization of this technology,” Lee said. (ani)
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