LG shares experienced gains in Seoul following reports that the company is developing advanced tools for manufacturing memory chips used with AI processors from Nvidia and other firms. According to the Seoul Economic Daily, LG aims to begin mass production of hybrid bonders for high-bandwidth memory (HBM) chips by 2028. LG has acknowledged conducting technical research on hybrid bonders for HBM but has not confirmed a specific timeline for mass production. LG Corporation is a South Korean multinational conglomerate that manufactures electronics, chemicals, and telecommunications products. It operates in various sectors, including home entertainment, mobile communications, and vehicle components.
South Korea is home to SK Hynix, a major supplier of HBM, which consists of stacked DRAM chips. Hybrid bonders are essential for HBM manufacturing, allowing for thinner stacks through the direct bonding of electrodes on adjacent layers. The development of this technology is crucial for advancing AI processing capabilities and maintaining a competitive edge in the semiconductor market.
Other Korean companies involved in hybrid bonding equipment production include Hanmi Semiconductor, Samsung Electronics, and Hanwha Vision’s Hanwha Semitech unit. On Monday, Hanmi Semiconductor’s shares decreased by as much as 6.5 per cent, while Hanwha Vision’s fell 4.7 per cent, and Samsung Electronics’ dipped 1.3 per cent.
According to Greg Roh, an analyst at Hyundai Motor Securities Co., the bonder market has a high entry barrier, favouring established companies. While exploring new business opportunities during market growth makes sense, validation will be necessary given the presence of strong existing players.
