(source : ANI) ( Photo Credit : ani)
LG Electronics is diving headfirst into the world of semiconductor equipment, especially for high-bandwidth memory (HBM) chips that power the booming artificial intelligence (AI) industry. With AI demand skyrocketing, the need for advanced chip packaging tools is exploding, and LG wants a big slice of that pie.
According to a recent report from Pulse, the English arm of Korea’s Maeil Business Newspaper, LG has kicked off full-scale development of a hybrid bonder—a game-changing tech for next-gen semiconductor processes. This “dream technology” directly bonds DRAM layers in HBM without traditional bumps, boosting power efficiency, wiring density, and speed way beyond old-school methods. No company has nailed mass production yet, but LG is racing to change that.
LG isn’t going solo. The company has teamed up with Inha University, Gyeongbuk Technopark, and smaller equipment makers in a national consortium. Their goal? Wrap up proof-of-concept testing by 2028 and launch commercial hybrid bonders by 2030. This push builds on over a decade of research at LG’s production technology center, where they’ve already supplied basic bonder machines to outsourced semiconductor assembly firms (OSAT).
But LG’s ambitions go further. They’re speeding up work on other key tools, like precision laser systems for semiconductor glass substrates and high-speed inspection machines for HBM. This diversification is part of a smarter strategy: shifting toward business-to-business (B2B) growth that ties together semiconductor smart factories, heating, ventilation, and air conditioning (HVAC) systems, and chip equipment.
Imagine an all-in-one setup for AI infrastructure—LG links automated semiconductor plants, eco-friendly HVAC for data centers, and cutting-edge bonders to cover the entire ecosystem. It’s a smart move, especially since B2B already drives about 50% of LG’s sales and nearly 80% of its profits.
LG’s top boss, CEO Cho Joo-wan, is all in. In a recent social media post, he highlighted the company’s investments in HBM tech to support AI growth. At the IFA 2025 event in Berlin on September 5, Cho told reporters that components and equipment are key pillars for LG’s future.
The competition is fierce, with global players like Hanmi Semiconductor, Netherlands’ Besi, Singapore’s ASMPT, and Hanwha Semitech also chasing hybrid bonding breakthroughs. If LG pulls off mass production, it could supercharge South Korea’s semiconductor equipment scene.
The market looks promising too. Business Research Insights predicts the global hybrid bonding market will jump from $199 million this year to $713 million by 2034, growing at over 15% annually. LG’s bold bet on AI-driven semiconductor innovation could be a winner.
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