LG Innotek has unveiled an embedded flip-chip ball grid array (FC-BGA) substrate with silicon capacitors integrated inside the package substrate for artificial intelligence chips. The company is also developing technology to embed active devices and bridges. Demand for embedded substrates, particularly FC-BGAs, is growing as higher-performance AI chips require more stable power delivery.

LG Innotek displayed FC-BGA samples with embedded silicon capacitors at KPCA Show 2026, held at Songdo Convensia in Incheon on Sept. 9. The company showed two structures, with silicon capacitors embedded in either the substrate’s core layer or buildup layer.

The core-layer structure accommodates relatively thick, high-capacitance silicon capacitors. The buildup-layer structure embeds thinner silicon capacitors to reduce overall substrate thickness. LG Innotek said the location and specifications of the embedded silicon capacitors can be varied depending on the semiconductor and substrate design.

A silicon capacitor is a passive component made by forming dielectric and electrode layers on a silicon wafer. It stores power required by a semiconductor and supplies it instantaneously to suppress voltage fluctuations. Conventionally, capacitors are mounted on the substrate surface and deliver power to the chip through copper interconnects. Embedding capacitors inside the substrate shortens the power-delivery distance between the semiconductor and capacitor while freeing up mounting area on the substrate surface.

Silicon capacitors are particularly suited to stable power delivery at high frequencies because of their low equivalent series inductance (ESL). AI semiconductors operate at high speeds and can draw large amounts of power instantaneously. Lower ESL helps suppress voltage fluctuations.

Major silicon capacitor suppliers include Murata and Samsung Electro-Mechanics. TSMC also uses internally produced silicon-based deep trench capacitors (DTCs) in advanced packaging.

LG Innotek has been developing embedding technology for about a decade. It initially embedded multilayer ceramic capacitors (MLCCs) in flip-chip chip-scale packages (FC-CSPs). As the AI semiconductor market expanded, the company unveiled FC-BGA technology with embedded silicon capacitors in 2024 and began applying it to mass-produced products last year.

LG Innotek is also developing technology to embed active devices and bridges inside FC-BGAs, in addition to passive components such as silicon capacitors and inductors. Active devices directly control signals and power, while bridges connect multiple chips over short distances to support high-speed signal transmission. The goal is to expand the substrate’s role beyond simply connecting semiconductors to the mainboard.

“We have applied embedding technology for about 10 years, beginning with passive components inside FC-CSPs,” an LG Innotek official said. “It is attracting renewed attention as FC-BGAs become more advanced.”

“In the past, substrates simply served as a medium for transmitting signals, but they are now evolving to provide functionality themselves by incorporating silicon capacitors, inductors and other components,” the official said. “Moving components from the substrate surface to the inside gives customers greater design flexibility and enables thinner products.”

Simmtech is showcasing next-generation semiconductor substrate technologies, including Small Outline Compression Attached Memory Module (SOCAMM) for artificial intelligence servers, at KPCA Show 2026, held Sept. 9-11 at Songdo Convensia in Incheon.

Key products on display include SOCAMM, next-generation Low Power Compression Attached Memory Module (LPCAMM), enterprise solid-state drive (SSD) modules and Compute Express Link (CXL) memory modules.

Simmtech is the largest supplier of module printed circuit boards (PCBs) and memory semiconductor package substrates used in SOCAMM. Nvidia's Rubin CPU uses eight SOCAMMs, with each SOCAMM containing four low-power DRAM (LPDDR) packages. Simmtech supplies both SOCAMM module PCBs and LPDDR package substrates.

The company is also showcasing ultra-thin and ultra-fine substrate technologies, including Ultra-Thin Substrate, Hybrid Substrate, Small Via, Fine Bond Finger and Fine-Pitch/Dual-Size Small Outline Package (SOP) technologies.

Simmtech is displaying substrate technologies designed to address rising power consumption and heat generation in AI semiconductors. Bar Via, Chunk Via and Thick Cu Pattern technologies improve heat dissipation for high-power semiconductors. The company is also showcasing Rigid-Flex Substrate using Cu Post and Cavity technologies, as well as Wettable Flank substrates.

Simmtech is also presenting preliminary research on glass substrates, a technology that replaces conventional organic cores with glass. The technology can reduce warpage in large-area packages while facilitating ultra-fine wiring and improving signal integrity.

"The importance of substrate technology is greater than ever as the AI semiconductor market grows," a Simmtech official said. "Through this exhibition, we will share our next-generation semiconductor substrate technologies and future vision with customers and industry officials and strengthen our technology leadership in the global market."

TLB will introduce artificial intelligence (AI)-based smart manufacturing technologies at its printed circuit board (PCB) production plant in Ansan. The company will use AI to optimize production conditions and deploy autonomous mobile robots and other technologies on the factory floor.

Ansan City said Sept. 8 that it will develop TLB into a lead AI factory as part of its AI transformation (AX) demonstration industrial complex project at the Banwol and Sihwa National Industrial Complexes. The technologies will first be demonstrated at TLB’s Ansan plant before successful applications are expanded to other manufacturers in the industrial complexes.

The AX demonstration industrial complex project integrates AI and data into manufacturing processes to improve productivity, reduce costs and strengthen corporate competitiveness. A total of 28 billion won in central government, local government and private funding will be invested through 2028.

The project will also establish a manufacturing AI open lab where companies can directly test AI technologies. Universities and research institutions will analyze problems at manufacturing sites and develop and demonstrate the necessary technologies. An AX comprehensive support center will assess each company’s level of AI adoption and connect it with appropriate technologies and experts. Plans also call for a secure data zone where manufacturing, energy and logistics data can be used, as well as an integrated support platform linking manufacturers with AI technology companies.

“The Banwol and Sihwa industrial complexes have been a key foundation supporting Ansan’s industrial competitiveness, and we need to transform them into future-oriented industrial complexes through manufacturing innovation and improvements to working conditions,” Ansan Mayor Lee Min-geun said. “We will create a virtuous cycle in which production innovation using AI and data strengthens corporate competitiveness, while a better working environment attracts young people and talent.”

Simmtech is strengthening cooperation with key domestic and overseas suppliers. The company signed long-term supply agreements with some partners to address uncertainty in raw material procurement.

Simmtech said Sept. 8 that it held its 2026 Simmtech Supplier Day at the Sheraton Grand Incheon Hotel in Songdo. The event was attended by 34 representatives, including chief executives and sales executives, from 17 major domestic and overseas suppliers.

The company discussed joint responses to supply-chain issues with raw material and equipment suppliers and signed long-term supply agreements with some companies. Discussions covered mid- to long-term materials development roadmaps, production capacity expansion plans and measures to address raw material procurement. Working-level meetings were also held in procurement and sales, as well as marketing and development.

Following welcoming remarks by Simmtech CEO Chun Youngsun, executives from each business division gave presentations. The company shared its outlook for the semiconductor memory market and growth prospects for artificial intelligence (AI)-related businesses, the status of its global production bases, package substrate technology trends, manufacturing differentiation strategies and future investment plans. It also presented its business roadmap for SOCAMM, a next-generation memory module substrate for AI servers.

"As demand for AI semiconductors expands and the market for high-end substrates grows rapidly, strengthening the supply chain with key partners has become more important than ever," a Simmtech official said. "We will strengthen mutually beneficial cooperation based on long-term partnerships with our suppliers."

INTEKPLUS has won its first order for glass substrate inspection equipment from a Japanese customer, potentially expanding its substrate inspection business beyond flip-chip ball grid array (FC-BGA) substrates into glass substrates.

According to industry sources on Sept. 8, INTEKPLUS recently received an order from a major Japanese substrate maker for an automated optical inspection (AOI) system for glass substrate R&D. The equipment will be delivered in the second half of this year. The number of systems and the contract value were not disclosed. Given the outlook for the glass substrate market, the order could lead to longer-term business opportunities.

The equipment for Japan builds on INTEKPLUS’s existing substrate inspection technology, enhanced to accommodate the characteristics of glass substrates. Handling technology allows fragile glass to be transported and secured safely during inspection and is designed to work with the customer’s existing glass substrate handling solution. Inspection precision has also been improved to address increasingly fine circuit pitches as advanced packaging substrates become more highly integrated.

The system uses white light scanning interferometer (WSI) technology to measure the three-dimensional shape of glass substrates after plating and wiring processes. It inspects the height and shape of fine bumps, flatness and warpage. Surface defects such as cracks and chipping are detected through automated final visual inspection (AFVI). Precise inspection is particularly important as glass substrates become finer and larger, because even small variations in shape or defects can cause failures in subsequent processes.

INTEKPLUS also made an initial delivery of its next-generation FC-BGA inspection equipment to the same customer, along with an R&D-use panel three-dimensional (3D) inspection system. Both systems are designed for larger and finer substrates. Additional orders are expected as the customer increases production.

The customer is a Japanese semiconductor substrate manufacturer that produces FC-BGA substrates. It recently established a pilot line for advanced packaging and is developing technology to form redistribution layers (RDLs) and other structures on glass substrates or glass interposers after through-glass via (TGV) processing.

INTEKPLUS has conducted sample tests of glass substrates for major South Korean substrate makers and global customers. Using glass substrates produced by customers, the company verified the performance and applicability of its inspection equipment.

Existing INTEKPLUS substrate inspection equipment is also being used for glass substrate development. Two major South Korean substrate makers use existing INTEKPLUS systems at their research centers to inspect internally produced glass substrate samples. Because finished glass substrates have structures similar to FC-BGA substrates, existing 3D measurement and visual inspection technologies can be applied.

Demand is expected to expand from R&D systems to mass-production equipment once customers begin volume production of glass substrates. At the mass-production stage, throughput and handling of large substrates become important alongside inspection precision, increasing demand for new equipment. INTEKPLUS plans to expand sales of glass substrate inspection equipment, primarily to its existing FC-BGA customers.

“Japan is a market where customers have a strong preference for domestic equipment, making it difficult for foreign equipment suppliers to enter, but evaluations and initial deliveries of INTEKPLUS equipment have recently increased as substrates become larger,” an INTEKPLUS official said. “For glass substrates, we have already secured sufficient technology to perform inspections even with equipment previously supplied.”

Samyang Corp. said Sept. 8 that Ahn Tae-jin, a team leader at its Chemical R&D Center's Mobility Tech Center, received a Prime Minister's Commendation at the inaugural Technology Developers' Day ceremony hosted by the Ministry of Science and ICT. Ahn was recognized for leading the development of siloxane-based polycarbonate (Si-PC) compounds for automotive interiors and high-transmittance polycarbonate (PC) materials for automotive daytime running lights.

Ahn has led the development of Si-PC compounds for automotive interiors since 2017. Si-PC combines conventional PC with siloxane components, improving chemical resistance and low-temperature impact resistance, weaknesses of conventional PC. The material retains its impact strength even after exposure to chemicals during painting processes. It has also passed head impact tests, which evaluate safety when an occupant's head strikes interior vehicle components.

The material is currently used in large interior components such as center fascias and crash pads in South Korean vehicles, as well as ambient light covers. Samyang began supplying Si-PC to South Korean automakers in 2019. Cumulative sales through the first quarter of this year reached 10,000 tons, generating more than 50 billion won in revenue. The company has registered 14 related patents, two of which have been recognized as international patents in markets including the US, Japan, China and Europe.

Ahn also led the development of high-transmittance PC for automotive daytime running lights using an isosorbide-based light-transmission enhancer produced by Samyang Innochem. Isosorbide is made by chemically processing starch extracted from plant resources such as corn. When used in plastics, it improves weather resistance, durability and light transmittance. Development began in 2021, with commercial production starting in 2024.

Sales of the high-transmittance PC exceeded 130 tons last year. The material is used in optical components inside automotive headlamps and in optical parts for ambient lighting. It received New Excellent Technology (NET) certification from the Korean Agency for Technology and Standards under the Ministry of Trade, Industry and Resources in 2022. In January, it obtained certification from the Automotive Manufacturers Equipment Compliance Agency (AMECA) in the US. Samyang is pursuing entry into the US market based on the certification.

"The materials recognized through this award are meaningful in that they have strengthened the competitiveness of South Korea's automotive materials industry and contributed to greater self-reliance in materials," Ahn said. "We will continue to focus on developing differentiated materials and expanding commercialization."

aweXome Ray said on Aug. 11 it has secured 7.5 billion won in a Series B bridge financing round, with investors recognizing the technological and commercial potential of its carbon nanotube (CNT)-based extreme ultraviolet (EUV) pellicle membrane.

Strategic investors included S&S Investment, an affiliate of S&S Tech, a manufacturer of photomasks and EUV pellicles, as well as Wonik Investment Partners. Wonik Investment Partners and Hanwha Investment & Securities participated through a jointly managed fund. Other investors included Reinvestment, L&S Venture Capital, KNET Investment Partners, Union Investment Partners, and Ascendo Ventures.

The company said participation by pellicle manufacturers, semiconductor materials and equipment companies, and financial investors demonstrates industry recognition of both the technological competitiveness and commercialization potential of its CNT-based pellicle membrane. It added that the participation of a defense-focused fund jointly managed by Wonik Investment Partners and Hanwha Investment & Securities also highlights the potential application of its CNT fibers and membranes in aerospace and defense.

The proceeds will be used to stabilize production of EUV pellicle membranes, strengthen quality control systems and support customer supply programs. aweXome Ray has established a dedicated cleanroom production line for EUV pellicle membranes in Anyang, Gyeonggi Province, to produce qualification samples and support initial customer shipments. The company said customer evaluations are currently underway and expects initial commercial supply and revenue once qualification is completed.

aweXome Ray is developing CNT-based membranes for EUV pellicles used in advanced semiconductor lithography. Pellicles protect photomasks carrying semiconductor circuit patterns from contamination during the EUV exposure process, requiring both high EUV transmittance and exceptional heat resistance. The company said CNT materials, which are lightweight, thin and highly heat-resistant, are well suited for next-generation pellicles designed for high-power EUV exposure environments.

The company has also strengthened its pellicle business with additional industry expertise. Hong Sung-chul, a senior executive at S&S Investment, joined aweXome Ray's board as an outside director in March. A former Samsung Electronics engineer with experience in semiconductor photomask and pellicle development, Hong will support customer qualification and technical engagement.

In February, Lee Dong-wook, who previously led advanced materials commercialization at LG Chem and EcoPro BM, joined the company as Chief Product Officer (CPO). He oversees the pellicle business division and is responsible for converting research and development achievements into commercial products and customer supply.

aweXome Ray is also participating in a government-funded pellicle technology development project under South Korea's Deep Tech Challenge program administered by the Ministry of SMEs and Startups. The company is carrying out a 3.6 billion won research and development project and has been selected for the Korea Technology Finance Corporation (KIBO) Unicorn Bridge program, securing 600 million won in funding and eligibility for up to 20 billion won in technology guarantees. The company plans to combine private investment with government R&D support to advance its technology and accelerate commercialization.

The company is also stepping up preparations for an initial public offering (IPO). After signing an investment agreement with Jeju Special Self-Governing Province in March, it relocated its headquarters to the Jeju Science Park. Having been selected as one of the province's IPO support companies, aweXome Ray is preparing to appoint an IPO underwriter and undergo a preliminary technology assessment. The company aims to pursue a technology-track listing in 2028 while advancing customer qualification and initial product shipments.

Hong Sung-chul, senior executive at S&S Investment, said aweXome Ray possesses differentiated CNT-based EUV pellicle membrane technology and strong commercialization potential.

"With its production line now in place and customer qualification underway, the company has entered the commercialization stage. We will actively support the establishment of a stable supply chain and successful market entry," he said.

Chief Executive Officer Kim Se-hoon said the new production line and funding round represent an important milestone in transforming aweXome Ray from a research-focused company into an advanced materials supplier capable of serving customers.

"We will successfully complete customer qualification, accelerate commercialization of our CNT-based EUV pellicle membrane, and strengthen our competitiveness in the global semiconductor materials market," he said.

Semiconductor ceramics materials suppliers and their customers are expanding technical collaboration while strengthening industry-academia-research partnerships to reinforce the semiconductor supply chain.

The Engineering Ceramics Division (KECD) of the Korean Ceramic Society said on Aug. 11 it hosted the Semiconductor Process Ceramics Materials and Components Innovation Forum Seminar at the IT Medical Convergence Technology Center in Geumo Techno Valley, Gumi, North Gyeongsang Province. The event was jointly organized with the Semiconductor Process Ceramics Materials and Components Innovation Forum and the Gyeongbuk–Gumi Semiconductor Specialized Complex Promotion Team.

The seminar brought together semiconductor manufacturers and equipment companies including Samsung Electronics, SK hynix, SEMES, Lam Research Korea, Wonik IPS, TES, and Eugene Technology. A total of 30 companies participated overall, including ceramics materials and components suppliers such as Wonik QnC, Komico, Mico Ceramics, TCK, Worldex Industry, CMTX, and LKN Engineering.

The seminar focused on "Ceramics and Plasma Chemistry for Semiconductor Manufacturing Processes." Presentations covered plasma resistance characteristics of ceramic materials used in etching and deposition chambers, particle reduction technologies and design strategies for high-durability ceramics. Researchers from Korea Aerospace University, the Korea Research Institute of Standards and Science (KRISS), Kumoh National Institute of Technology, and the Korea Institute of Materials Science (KIMS) presented their latest research.

Following the seminar, participants held an industry-academia networking session to discuss expanding technical collaboration and joint research among companies and research institutes. The promotion team said it plans to make the seminar a regular event and use it as a platform for future commercial cooperation.

Lee Hyun-kwon, head of the Gyeongbuk–Gumi Semiconductor Specialized Complex Promotion Team, said the event marked the first opportunity for leading semiconductor manufacturers and materials suppliers in South Korea to share commercialization technologies and on-site industry requirements.

He added that the Gyeongbuk–Gumi Semiconductor Specialized Complex will strengthen its role as a collaborative platform linking companies with one another as well as with research institutions.

Avaco said on Aug. 11 it has begun operating a pilot production line, developed in collaboration with affiliate AVATEC, to validate through-glass via (TGV) processes for next-generation semiconductor packaging substrates.

The companies completed construction of the pilot line in the first half of this year. The line supports large-format glass substrates measuring 515 × 510 millimeters and integrates laser drilling, etching, seed-layer deposition and optical inspection into a single process flow.

In addition to evaluating the performance of individual production tools, the pilot line is designed to verify process integration and repeatability in mass production. AVATEC, drawing on its manufacturing experience in display glass etching and thin-film processing, will oversee process operation and production stability.

Avaco has been investing in TGV equipment and process technologies since 2023. Its flagship second-generation TGV laser drilling system, AXIUM AP-250K, is capable of processing up to 10,000 via holes per second using dual optical heads. The company said the system achieves tolerances below 5 micrometers, enabling uniform processing across large-area glass panels.

The company has also secured alkaline wet etching technology and seed-layer deposition equipment for post-laser processing. By combining physical vapor deposition (PVD) with hybrid deposition techniques, Avaco is advancing process technologies for controlling high-aspect-ratio structures and forming uniform metal layers, both of which are critical for TGV substrates.

An optical inspection system has also been installed to inspect defects generated during the manufacturing process. The system performs full inspection of TGV hole geometry and processing quality and will be linked with an automated production line to validate quality control systems for mass production. The company added that it has secured a variety of glass materials through non-disclosure agreements (NDAs) with major glass suppliers.

The two companies plan to provide TGV glass substrate samples incorporating laser drilling through seed-layer deposition in 2026. The samples will range in size from 100 × 100 millimeters to 515 × 510 millimeters. In 2027, they plan to expand sample offerings to include metallized substrates incorporating laser drilling, etching, deposition, via filling and planarization processes.

Avaco said it is currently discussing technology collaboration and future mass production with multiple overseas customers. Once the pilot line has completed process and equipment validation, Avaco plans to expand its TGV equipment business, while AVATEC will participate in commercialization of glass substrates by leveraging its etching technology and process operation expertise.

An Avaco official said the company believes that validating the entire manufacturing process—not just individual tools—is essential for entering the glass substrate market.

"Through our collaboration with AVATEC, we will organically combine equipment, process technology and mass production expertise to establish an integrated TGV solution capable of delivering the production-ready products our customers require," the official said.

Synopex said on Aug. 11 it has received marketing approval from South Korea's Ministry of Food and Drug Safety (MFDS) for its hemodialysis (HD) machine, paving the way for domestically developed products to enter a market that has been entirely dependent on imported systems.

Hemodialysis is a treatment that removes waste products and excess fluid from the blood of patients with chronic kidney disease. The procedure relies on several key medical devices, including hemodialysis machines, dialyzers and water purification systems.

With the approval, Synopex said it has completed the localization of the three core medical device solutions used in hemodialysis: dialyzers (hemodialysis filters), portable water purification systems for hemodialysis machines and HD machines. The company had previously obtained MFDS approvals for 11 hemodialysis filter products, a continuous renal replacement therapy (CRRT) system for critically ill patients and a portable water purification system for hemodialysis equipment.

The HD machine was developed under a national project led by the Korea Medical Device Development Fund (KMDF) in collaboration with researchers from the Department of Nephrology and the Department of Biomedical Engineering at Seoul National University Hospital. In 2024, KMDF designated the localization of the three core hemodialysis medical devices as one of its 10 flagship national projects.

Synopex is developing an upgraded follow-up model of its CRRT system for critically ill patients. It is also working on a mass-production version of its HD machine equipped with hemodiafiltration (HDF) functionality. The company plans to seek regulatory approval and commercialize the HDF-equipped model in the future.

Kang Chang-ho, head of Synopex's Artificial Kidney Sales Division, said the MFDS approval for the HD machine marks "a historic starting point" in establishing medical sovereignty in South Korea's hemodialysis device market, which has long relied entirely on imported products.

He added that the company is preparing for mass production of the HD machine alongside its dialyzers and water purification systems, which are already being introduced to the market.

Wacker Chemicals Korea said on Aug. 11 it has launched RainGuard, a premium water-repellent treatment for building exteriors designed to reduce moisture penetration and improve the durability of exterior walls.

The new product, LC4004WR RainGuard, is a water-based penetrating water repellent that maintains water vapor permeability, allowing moisture inside building materials to escape. It can be applied to concrete, brick and mortar using spray, roller or brush application methods.

Without forming a separate coating film on exterior surfaces, the product reduces water absorption by approximately 20% to 25% compared with conventional products, according to the company. It also increases the water contact angle by about 10%, enhancing the beading effect. Wacker said early water-repellent treatment is important because prolonged exposure to moisture can lead to reduced thermal insulation performance, efflorescence and cracking in building exteriors.

The product was developed using Wacker's silane- and siloxane-based water-repellent technology from Germany. The water-based emulsion preserves the breathability of building materials while providing excellent beading performance and weather resistance. It is designed for use as a water-repellent treatment for mineral-based exterior building materials.

Lotte Energy Materials has entered the market for ultra-thin copper foil used in artificial intelligence (AI) data centers and is considering a third capacity expansion based on binding customer agreements.

The company disclosed its third-phase expansion strategy on Aug. 6, centered on ultra-thin copper foil products. Ultra-thin copper foil, measuring between 1 and 3 micrometers in thickness, is a next-generation circuit material used in AI data center optical transceivers and semiconductor packaging applications. The product is significantly more difficult to manufacture than conventional circuit foil due to its extremely thin profile.

Lotte Energy Materials currently supplies reverse-treated foil (RTF) and high-voltage low-profile (HVLP) copper foil for AI data center optical transceivers. The materials are used in the inner and outer layers of transceiver substrates. RTF products range from 12 to 70 micrometers in thickness, while HVLP products range from 12 to 35 micrometers.

The company plans to expand its portfolio into the thinner ultra-thin copper foil segment to target the rapidly growing optical transceiver market.

The ultra-thin copper foil market is currently dominated by Japan’s Mitsui Chemicals. However, rising investment in AI data centers has created an opportunity for new entrants. Demand for ultra-thin copper foil has surged as optical networking transitions toward 800G and 1.6T architectures. At the same time, North American customers have increasingly sought non-Chinese supply chains. Lotte Energy Materials is currently the only company operating a circuit foil production base in South Korea.

The company emphasized that any third-phase expansion will depend on securing binding agreements with customers. Future investment decisions will be based on confirmed demand commitments rather than speculative capacity additions.

“Customer demand for additional expansion is strong, and we are reviewing a third expansion phase either at available space within our domestic facilities or at a new site,” the company said. “The project will proceed once binding customer contracts are signed and economic feasibility is secured.”

Lotte Energy Materials added that it plans to determine the timing and scale of investment through discussions with customers and is already conducting preliminary preparations, including concept design work, due to strong demand from key clients.

The broader circuit foil business is also shifting toward AI-related applications. Demand has expanded beyond traditional IT products into high-end copper foil for AI accelerators, network switches and optical transceivers.

High-value-added HVLP products currently account for roughly 20% of circuit foil sales. Following completion of the second expansion phase next year, the proportion is expected to exceed 50%. Some production lines dedicated to AI-focused HVLP products are already being operated exclusively for specific customers.

The company began mass production earlier this year of HVLP 1 and HVLP 2 products used in AI networking equipment supplied to Nvidia systems. Production yields have reached approximately 60%, and commercial shipments began in the second quarter after customer qualification procedures were completed.

Production capacity for HVLP 3 and HVLP 4 products designed for Nvidia’s next-generation Rubin platform was secured through the first expansion phase completed in May. Initial mass production began in the second quarter, and related revenue is expected to increase in the second half as Rubin shipments expand.

Lotte Energy Materials completed its first expansion phase in May, increasing annual circuit foil production capacity from 3,700 metric tons to 6,700 metric tons.

The second expansion phase, currently under construction, will add annual capacity of 16,000 metric tons. Major equipment contracts have been finalized and manufacturing has begun. The company plans to accelerate equipment delivery schedules and start operating part of the new production lines in the second quarter of 2027, ahead of the original timetable, with full operations beginning in the fourth quarter.

The company also reported second-quarter consolidated revenue of 286.4 billion won and an operating loss of 9.2 billion won. Despite higher copper foil sales volumes and increased revenue from AI-focused high-end products, earnings remained in the red due to initial expansion costs and production stabilization expenses.

“Both pricing and demand are entering a more stable phase,” Chief Executive Officer Kim Yeon-seop said. “We believe a turnaround is only a matter of time and can be achieved in the near future.”

CMTX said through its shareholder communication platform that it has no plans to issue convertible bonds (CBs) or bonds with warrants (BWs), dismissing concerns raised after its recent extraordinary general meeting.

The company said amendments approved at the extraordinary shareholders’ meeting held on July 22 included the introduction of an independent director system in line with revisions to Korea’s Commercial Act, as well as an increase in the issuance limits for CBs and BWs. “We currently have no plans to issue CBs or BWs,” CMTX said.

Following shareholder approval, CMTX increased the issuance limit for both CBs and BWs to 50 billion won each from 10 billion won previously. The company said the move was intended as a preparatory measure to provide flexibility for future mergers and acquisitions (M&A) and strategic investment opportunities. It added that it currently holds approximately 90 billion won in cash and cash equivalents and has secured 100 billion won in available credit facilities from financial institutions, making external fundraising unnecessary at this time.

CMTX said that if it had been planning a large-scale issuance of CBs or BWs in the near future, it would have raised the limits by a substantially larger amount. The company described the amendments as a minimum-level revision designed to address potential future needs. It also emphasized that any future financing decisions would be made with the goal of minimizing dilution for existing shareholders.

The company also revised its articles of incorporation to reflect changes to the Commercial Act, including replacing outside directors with independent directors and increasing the required proportion of independent directors from at least one-quarter of the board to at least one-third.

Through its recently launched shareholder communication forum, CMTX said it plans to continue sharing key management information, including earnings analysis, investment and capacity expansion progress, new customer acquisition, and shareholder return policies.

HanWool Semiconductor on Aug. 6 unveiled its strategy for AI-based multilayer ceramic capacitor (MLCC) back-end manufacturing equipment, highlighting an ultrasound inspection system and a second-generation mounter capable of conducting high-speed, full-scale inspection of internal defects.

The company aims to expand its presence in automotive electronics and AI server markets by transforming MLCC inspection methods. As demand grows for high-reliability MLCCs, inspection requirements are extending beyond external appearance to internal structures and evolving from sample-based checks to high-speed, 100% inspection.

HanWool is developing an “AI-based ultrasound full inspection system” capable of non-destructively detecting microscopic cracks, delamination and voids inside MLCCs. The system combines AI-driven judgment technology with ultrasound signal analysis to overcome the limitations of conventional sample inspections while improving both inspection speed and reliability.

A key element of the strategy is the company’s proprietary deep-learning inspection platform, HaWAIe. The platform is designed to detect defects such as microcracks, chipping, electrode failures and foreign materials that are difficult to identify through visual inspection or rule-based algorithms. HanWool plans to expand its use beyond visual inspection equipment to ultrasound inspection systems and process automation equipment.

The company is also developing a second-generation mounter designed for high-value-added MLCC production. HanWool said the new system will improve production yield and throughput by more than 30% compared with existing equipment while supporting ultra-small MLCC products.

“The MLCC inspection market is rapidly evolving from simple visual inspection toward high-speed full inspection capable of identifying internal defects,” a HanWool Semiconductor official said. “Through commercialization of our AI ultrasound inspection system and second-generation mounter, we aim to secure a leading position in the market for high-value MLCC manufacturing equipment.”

Simmtech reported a sharp increase in second-quarter earnings as sales of package substrates for artificial intelligence semiconductors continued to expand.

The company disclosed on Aug. 5 that it recorded consolidated revenue of 514.6 billion won and operating profit of 62.9 billion won for the second quarter.

Compared with the same period last year, revenue increased 51.0% while operating profit surged 1,034.4%, more than elevenfold. On a sequential basis, revenue rose 21.8% and operating profit increased 358.7%.

For the first half of 2026, Simmtech posted cumulative revenue of 936.9 billion won and operating profit of 76.6 billion won.

The company's operating margin reached 12.2% in the second quarter, up 10.6 percentage points from a year earlier and 9.0 percentage points from the previous quarter.

Net profit totaled 44.9 billion won, compared with a net loss in the year-earlier period, marking a return to profitability.

Simmtech expects growth to continue in the second half of the year.

In a separate disclosure, the company forecast second-half consolidated revenue of 1.0719 trillion won and operating profit of 163.1 billion won. The projected operating profit exceeds the company's first-half operating profit by more than two times.

The company said demand for system IC package substrates is expected to remain strong, while sales of products for SOCAMM are set to expand in earnest.

As a result, the proportion of high-value-added products used in AI applications is expected to increase further during the second half of the year.

Taiwan-based GlobalWafers has formally acknowledged growing supply shortages in the silicon wafer market, signaling a potential shift toward higher wafer prices as demand from artificial intelligence and advanced semiconductor applications accelerates.

During its second-quarter earnings conference call on Aug. 4, GlobalWafers said supply-demand imbalances are already emerging across the semiconductor wafer industry.

"The supply-demand imbalance in the wafer industry is already underway," the company said. "Our 12-inch (300mm), 8-inch (200mm) and 6-inch (150mm) production lines are effectively operating at full utilization, and supply constraints have already appeared for certain advanced 12-inch products."

The company attributed the tightening market to rapidly growing demand from AI semiconductors, high-bandwidth memory (HBM), silicon photonics and advanced packaging technologies.

GlobalWafers said both memory and logic chip manufacturers are increasingly seeking to secure long-term production capacity, turning potential shortages into a reality.

Similar trends are emerging across the broader wafer industry.

German wafer supplier Siltronic said during its earnings announcement on July 30 that inventory levels at memory and logic customers have normalized and customers have begun rebuilding safety stock inventories.

The company added that inventory replenishment is expected to further increase wafer demand and that requests for 300mm wafers are coming not only from existing customers but also from new ones.

Industry leader Shin-Etsu Chemical reported on July 24 that shipments of 300mm wafers increased by double-digit percentages both year over year and sequentially.

Japanese wafer manufacturer SUMCO also indicated in May that customer inventory adjustments were approaching completion.

South Korea's SK Siltron has been expanding production capacity through the phased startup of new facilities, but industry sources said demand growth is outpacing those additions.

The structure of long-term agreements (LTAs) is also changing.

Historically, LTAs were primarily designed to ensure stable wafer supplies for customers. Increasingly, however, they are being used as tools to secure future manufacturing capacity in anticipation of supply shortages.

Contract durations are also lengthening, with agreements increasingly extending from the traditional three-year range to five to eight years.

Last month, GlobalWafers signed a 10-year LTA with Micron, one of the longest agreements in the wafer industry's history. The contract, which begins next year, includes strategic financial support in the form of upfront payments.

The company said most of its revenue in the second half of this year and the first half of next year is expected to come from LTAs.

Shin-Etsu Chemical has stated that all of its 300mm wafer shipments are currently supplied under LTAs. Siltronic said roughly two-thirds of its shipments are sold through similar agreements.

Some memory customers are already requesting supply allocations for two to three years into the future.

Signs of pricing pressure are also emerging.

As supply tightens, prices in the spot market have started rising ahead of contract prices.

Siltronic said prices for non-LTA 300mm wafers have begun increasing, while GlobalWafers expects spot prices in the second half of 2026 to be higher than in the first half.

The industry expects price increases to eventually spread to long-term contracts as well.

GlobalWafers said it is discussing price increases with customers to reflect higher costs for raw materials, energy, logistics and labor.

"Existing LTAs will maintain their contracted prices, but future agreements will incorporate pricing mechanisms that reflect market conditions, product mix changes and industry developments," the company said.

Siltronic echoed the view, stating that prices must recover to levels that justify reinvestment as some LTAs come up for renegotiation in 2027 and 2028.

"We need broad and meaningful price increases," the company said.

The wafer industry has spent the past two years coping with shipment declines and pricing pressure after customer inventories surged beginning in 2023.

That trend began to reverse in late 2025 as inventories of 300mm wafers declined and inventory coverage levels fell further during the first quarter of this year, signaling the end of the industry's inventory correction cycle.

Many suppliers now view the second quarter of 2026 as the beginning of a new upcycle.

Industry participants expect supply shortages and price increases to become more pronounced from the second half of 2027.

Current shipment growth is being supported by higher utilization rates at existing semiconductor fabs. However, once new memory facilities being built by Samsung Electronics, SK hynix and Micron begin production, wafer demand could roughly double from current levels.

Daeduck Electronics reported record quarterly results as demand for semiconductor substrates used in artificial intelligence (AI) servers and data centers continued to expand. Operating profit surged 3,599% from a year earlier.

The company said on July 31 that it posted consolidated revenue of 401.0 billion won and operating profit of 70.3 billion won for the second quarter of 2026. Revenue increased 63% year over year, while operating profit jumped 3,599%. Compared with the previous quarter, revenue rose 16% and operating profit increased 37%.

Operating margin reached 17.5%, up 2.7 percentage points from 14.8% in the first quarter.

Growth was driven by higher sales of high-value semiconductor substrates for AI and data center applications.

"Performance continued to improve on the back of growing demand for high-performance semiconductors in AI and data center markets and strengthened business competitiveness," the company said.

Revenue from the company's core package substrate (PKG) business reached 343.5 billion won, up 65% from a year earlier and 18% from the previous quarter. Demand increased for controllers, optical modules and networking products used in AI data centers. Sales of automotive radar and advanced driver assistance system (ADAS) products also expanded. Improved product mix, higher productivity and favorable foreign exchange rates contributed to profitability.

Revenue from the multilayer board (MLB) business totaled 57.5 billion won, rising 53% year over year and 4% sequentially. The company began mass production of next-generation AI products and saw increased sales for semiconductor inspection equipment and electronic design automation (EDA) applications. Demand for high-margin products in aerospace and defense markets also remained stable.

The company's revenue mix continued to shift toward AI-related products. Flip-chip ball grid array (FC-BGA) substrates accounted for 26% of revenue, up from 23% in the previous quarter. Flip-chip chip-scale package (FC-CSP) products represented 48% of revenue, compared with 46% in the prior quarter, reflecting stronger sales of high-value products for AI servers and data centers.

By contrast, the share of memory-related chip-scale package (CSP) products—including NAND flash, low-power DRAM (LPDDR5), SOCAMM and Compute Express Link (CXL) products—declined to 23% from 25%.

Daeduck Electronics expects growth to continue in the third quarter. The company plans to expand mass production of large-area substrates for AI data centers and accelerate new product development. It also aims to address growing demand for high-performance networking products and physical AI-related applications.

SK hynix said it was unable to disclose additional shareholder return plans because of restrictions related to its American depositary receipt (ADR) offering and US securities regulations. The company expects to provide more specific details after the ADR process is completed in early August.

During the company's second-quarter earnings conference call on July 29, Song Hyun-jong, president of SK hynix's Corporate Center, said regulatory requirements tied to the ADR offering limited the company's ability to disclose new material information.

"Due to regulations and procedures related to the ADR offering, there are restrictions on providing additional material information that was not disclosed during the offering process," Song said. "We are reviewing various shareholder return options and will share specific plans with the market once they are finalized."

The restrictions are understood to stem from communication rules under Section 5 of the US Securities Act of 1933, which limit communications that could be interpreted as an offer to investors during a registered securities offering.

The US Securities and Exchange Commission (SEC) broadly interprets communications that could stimulate public interest in an issuer or its securities as potential offers. Violations of these restrictions are commonly referred to as "gun jumping."

The term originates from track-and-field competitions, where an athlete starts running before the starting gun is fired. In securities markets, it refers to the disclosure of new material information not included in an offering prospectus before the registration process is completed, potentially influencing investor decisions or market sentiment.

Because shareholder return measures such as share buybacks or special dividends could affect investment decisions, SK hynix was limited in what it could disclose while the registered offering remained in progress.

The company is expected to provide more detailed shareholder return plans after the ADR-related procedures conclude in early August.

Under Rule 174 of US securities regulations, prospectus delivery requirements remain in effect for up to 25 days after a newly registered public offering. During that period, investors must continue to receive offering-related information while post-offering procedures are completed.

An SK hynix spokesperson said the company expects to announce more specific shareholder return measures once the ADR process is finalized. The remaining post-offering procedures are expected to be completed on August 4.

SK hynix reported record quarterly results in the second quarter, posting revenue of 79.3187 trillion won and operating profit of 60.5426 trillion won. Despite the strong earnings, the company's share price fell nearly 10% on the day of the announcement, as investors were disappointed by the absence of additional shareholder return plans.

At the company's annual shareholders meeting earlier this year, Kwak Noh-jung, president of SK hynix, said the company aims to strengthen its financial position by building net cash to 100 trillion won over the long term while continuing to consider dividends and share repurchases.

As of the end of June, SK hynix held 69.37 trillion won in net cash, up from 35.01 trillion won at the end of March. The company is expected to reach 100 trillion won in net cash by the end of the third quarter.

SK Group Chairman Chey Tae-won has made his first-ever direct open-market purchase of SK hynix shares, a move interpreted as a display of his commitment to responsible management following the company's record quarterly earnings.

According to a regulatory filing on DART, the Financial Supervisory Service's electronic disclosure system, Chey purchased 3,620 common shares of SK hynix on the open market on July 30. Based on the stock's closing price of 1,322,000 won that day, the purchase was valued at approximately 4.79 billion won.

The transaction increased Chey's direct ownership of SK hynix shares from zero to 3,620 shares. Total holdings by the company's largest shareholder and related parties increased from 146,124,531 shares to 146,128,151 shares, while the ownership stake remained unchanged at 20.00%.

The purchase marks the first time Chey has directly acquired SK hynix shares in the open market. The move is seen as a display of responsible management, reflecting confidence in the company's mid- to long-term growth potential and corporate value amid the recent decline in the share price.

SK hynix reported record quarterly results on July 29, posting revenue of 79.3187 trillion won and operating profit of 60.5426 trillion won for the second quarter, both all-time highs on a quarterly basis. After the announcement, however, the shares weakened as profit-taking coincided with a correction in the South Korean stock market.

The purchase has also drawn attention because it came after the Seoul High Court, in a remanded case on July 24, ordered Chey to pay 944 billion won in property division to Roh Soh-yeong, director of Art Center Nabi. Analysts said the move demonstrates Chey's willingness to invest in a key group affiliate despite the substantial financial burden from the ruling.

SK Group Chairman Chey Tae-won must pay 944 billion won in property division to Roh Soh-yeong, director of Art Center Nabi, a South Korean court ruled in a remanded divorce case. The ruling included Chey's holdings in SK Inc. as part of the assets subject to division. The amount was about 400 billion won less than the 1.3808 trillion won awarded by the appellate court, but far higher than the 66.5 billion won ordered by the first-instance court.

The Seoul High Court's Family Division 1, presided over by Judge Lee Sang-joo, ruled on July 24 that Chey must pay Roh 944 billion won in property division, along with annual default interest of 5% from the date the judgment becomes final until payment is completed. The court ordered each party to bear its own litigation costs.

The court recognized Chey's holdings in SK Inc. as assets subject to division, concluding that a substantial portion of the couple's joint assets had been formed or acquired during their marriage. It set April 16, 2024, the date when oral arguments concluded in the divorce proceedings, as the valuation date for the assets. SK Inc. shares were trading at around 160,000 won at that time.

The court did, however, take into account the subsequent sharp increase in the value of Chey's SK Inc. shares when determining the amount of the property division. SK Inc. shares that Chey had gifted to relatives to maintain control of the group were excluded from the assets subject to division.

The court recognized Roh's contribution to the formation of the assets at 33.3%, or one-third. It found that Roh contributed to Chey's business activities and to the appreciation of SK Inc. shares by handling household affairs and child-rearing and through her external activities during the marriage. The contribution ratio was slightly lower than the 35% recognized by the appellate court.

The court did not take into account the 30 billion won in slush funds linked to former President Roh Tae-woo in calculating the property division ratio.

For the method of division, the court chose compensatory division, under which Chey will continue to hold the shares and pay Roh the shortfall in her portion in cash. The decision took into account the defense of management control and the stability of the group's governance structure.

The divorce proceedings began in 2015, when Chey publicly disclosed his intention to divorce and the existence of a child born outside the marriage. The legal dispute escalated when he filed for divorce mediation in July 2017.

In December 2022, the first-instance court ruled that Chey's SK Inc. shares were his separate property and excluded them from the assets subject to division, awarding Roh 66.5 billion won in property division and 100 million won in alimony. In May 2024, the appellate court determined that the shares were the couple's joint assets, recognized Roh's contribution at 35%, and ordered Chey to pay 1.3808 trillion won in property division and 2 billion won in alimony.

In October 2025, the Supreme Court found that the 30 billion won from the side of former President Roh Tae-woo appeared to be illicit funds raised during his presidency, and that it could not be taken into account as Roh Soh-yeong's contribution to the formation of the assets even if the money had flowed into SK Group. The court overturned the property division portion and sent the case back to the Seoul High Court. The divorce itself and the 2 billion won alimony payment were confirmed.

The business community is watching the impact the ruling will have on SK Group's governance structure. With Chey required to raise close to 1 trillion won for the property division payment, attention is turning to how he will secure the funds. Some observers have raised the possibility that he could use his SK Inc. stake as collateral or sell some assets, with SK Siltron cited as a prime example.

Immediately after the ruling, Chey's legal counsel issued a statement saying, "The divorce was confirmed by last year's Supreme Court ruling in a process of dissolving a marriage spanning nearly 20 years, and today's remanded ruling on property division followed. We feel apologetic for causing concern to many people." The statement added, "We respect the court's judgment, but we will closely review the details of the ruling before deciding our future response, including whether to appeal to the Supreme Court."