LB Semicon, an outsourced semiconductor assembly and test (OSAT) company, has entered the supply chain of Qualcomm, one of the world’s largest fabless semiconductor companies. LB Semicon said on Sunday it has secured Qualcomm’s approval for mass production and will begin mass production within August.
LB Semicon said the approval places it among Qualcomm-recognised back-end process partners. Qualcomm’s mass production approval is granted only after passing lengthy quality and reliability verification, and its supply chain is built mainly around top-tier global OSAT companies that meet those requirements, the company said. The company previously attended the Qualcomm Supplier Summit held in San Diego in July to reaffirm its willingness to cooperate.
The mass production covers Qualcomm semiconductors for AI data centres and automotive use. It will be carried out as an integrated back-end service spanning from bumping to testing and back-end processes. The approval also reflects the results of its strategy to expand its portfolio from a display driver IC (DDI)-focused business to higher value back-end processes such as non-DDI and power semiconductors. With major process utilisation rising and the share of higher value products increasing, it also expects improved results in the second half when mass production for Qualcomm is added. LB Semicon is investing funds secured through a paid-in capital increase into new bumping and back-end equipment.
CFO executive director Jeong-gyu Kim (김정규) said, "This mass production approval is the result of our back-end process technology and quality reliability being verified by a top-tier global customer." He said, "While responding without disruption to mass production set to begin in August, we will also prepare for a full-scale increase in volumes in the second half of next year through timely equipment investment and steadily expand our position in the high value back-end process market based on global references."