ASE & TDK to manufacture IC embedded substrates
Advanced Semiconductor Engineering (ASE) and TDK have announced that they will enter into an agreement to establish a joint venture company to manufacture IC embedded substrates using TDK's Semiconductor Embedded SUBstrate (SESUB) technology. ASE and TDK plan to own 51% and 49%, respectively, of the newly created entity. The indicative name of the joint venture company will be ASE Embedded Electronics, and its manufacturing facility is planned to be located in the Nantze Export Processing Zone, Kaohsiung City, Taiwan.
The SESUB technology enables semiconductor chips to be thinned down to as low as 50 µm and embedded in a four-layer plastic substrate. TDK's SESUB technology provides numerous advantages, such as enabling miniaturisation by reducing the mounting area on substrates and a thinner profile by achieving a 300 µm thickness. Other advantages include outstanding thermal dissipation characteristics, which offer greater design flexibility and inter-chip connection that enhances EMI performance.
ASE SiP solutions using SESUB technology will offer a robust embedded solution in enabling a wide number of applications such as PMIC, sensors and RF tuners. The planned joint venture business model aims to leverage on TDK's success in delivering SESUB technology to the market with ASE's capabilities in advanced packaging, test and module level solutions for semiconductor miniaturisation.
"With the anticipated need for further miniaturisation and weight reduction of smartphones and wearable devices in the future, demand for semiconductors embedded in substrates, such as SESUBs, is expected to increase globally," says Mr Takehiro Kamigama, CEO and President, TDK. "TDK has already been producing SESUBs at its Kofu Plant, but to meet the anticipated increase in demand, it will establish the joint company in Taiwan to add to its production capacity with ASE, which possesses technologies including assembly of IC packages and other items, and boasts a outstanding performance record in product testing. The joint venture establishment will create a structure for full-scale mass production".
"ASE serves a diverse group of customers including several major players supplying to the portable and wearable consumer market and is a leader in SIP integration using its advanced packaging solutions and test expertise. TDK, on the other hand, has a proven proprietary embedded substrate technology addressing the market needs of integrating more chips and functions, higher performance, lower power consumption and better heat dissipation onto a smaller form factor," comments Dr Tien Wu, COO, ASE Group. "We see this powerful alliance as an added value to the ASE SIP ecosystem and together, catapulting TDK's SESUB technology into the forefront as an industry standard".
The proposed establishment of and capital injection into the joint venture company will be subject to various regulatory approvals or consents.