As a global leader in semiconductor packaging and testing, Licheng Technology recently announced a 50% increase in this year's capital expenditure to meet the market demand driven by the rapid development of artificial intelligence (AI) technology. Simultaneously, the company is advancing the development and gradual expansion of High Bandwidth Memory (HBM) as planned.
Behind the Increase in Capital Expenditure
Licheng Technology’s significant increase in capital expenditure reflects the company’s optimistic outlook on the future of AI chip packaging business. With continuous advancements in AI technology, the demand for high-performance memory has surged, especially for HBM products. Licheng Technology CEO, Hsieh Yung-Da, stated that the company will concentrate resources to accelerate the research and application of advanced packaging technologies, particularly increasing investment in HBM products to meet the demands of high-end applications such as AI servers.
Image: Licheng Technology Plans to Promote the Development and Expansion of HBM
Market Prospects of HBM Technology
As a high-performance memory technology, HBM offers advantages such as high bandwidth, low power consumption, and smaller size, making it widely applicable in AI and High-Performance Computing (HPC) fields. With the rapid development of AI chips, the demand for HBM is rising. Licheng Technology is continuously expanding production to meet this market demand.
Strategic Layout of Licheng Technology
Licheng Technology’s strategic layout includes several key aspects:
1. Technological Innovation: The company will focus on promoting its Panel Level Fan Out on Substrate and Through Silicon Via (TSV) technologies to meet the market’s demand for high-performance, low-power chip packaging.
2. Capacity Expansion: Starting from the second half of 2024, the company plans to resume high capital expenditure, primarily for expanding new production capacity and developing new technologies to improve production efficiency and product quality.
3. International Cooperation: Licheng Technology also plans to strengthen cooperation with Japanese clients, expanding its packaging presence in the Japanese market to better understand market demands, expand business scope, and enhance competitiveness.
Industry Impact and Challenges
Licheng Technology’s strategic layout has a positive impact on the industry, promoting the semiconductor packaging and testing industry towards high-performance, high-value-added development. However, the company also faces challenges such as intensified market competition and rapid technological updates.
Conclusion
Licheng Technology’s increase in capital expenditure and advancement of HBM technology development and expansion demonstrate its deep understanding and proactive layout of the semiconductor packaging market in the AI era. This move is expected to strengthen the company's competitiveness in the high-performance memory market and lay a solid foundation for future growth. As AI technology continues to advance and market demand grows, Licheng Technology’s forward-looking strategy is expected to bring substantial returns.
Licheng Technology’s increased capital expenditure and HBM expansion plans are wise responses to the rapid development of AI technology. This not only reflects the company’s keen insight into market trends but also demonstrates its leadership in technological innovation and industrial upgrading. As AI and HPC applications continue to expand, the market demand for HBM technology is expected to grow, and Licheng Technology’s strategic layout is likely to achieve significant results in the coming years. However, the company also needs to continuously monitor market dynamics and adjust strategies flexibly to address potential market risks and technological challenges.
