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With the aim of fostering the business of boards for system ICs, such as memory controllers and wearable package boards, Simmtech is doubling its production capacity of system integrated circuit (IC) boards with an investment of 120 billion Korean won (645 million yuan).

According to industry sources on the 2nd, Simmtech plans to invest 600 billion won (3.22 billion yuan) each for this year and next year to expand production capacity at its Cheongju Plant 9.

SIMMTECH Co., Ltd., known for producing module printed circuit boards (PCBs that expand memory chips, including DRAM, and package substrates used for assembling various semiconductor chips, has decided to make this investment to expand its business into the system semiconductor sector.

The Cheongju Plant 9, which started operating in 2022 and produces high-value-added products using the MSAP process, has about 50% of the space still available, allowing for possible additional equipment investment.

Focusing on enhancing production capacity for flip chip chip scale packages (FC-CSP) and system-in-package (SiP) modules within the MSAP product line, which is due to their high profitability and significant growth potential, Simmtech aims to increase its existing revenue from 150 billion won (805.7 million yuan) to 400 billion won (2.15 billion yuan), a 166% increase. As of last year, the revenue from system IC-related products accounted for around 15% of the total.

FC-CSP uses bumps instead of wires as connecting materials, making it compact as the chip and board sizes are similar. Simmtech plans to target products such as Solid State Drive (SSD) controllers, server data buffer chips, and Compute Express Link (CXL) controllers.

SiP involves packaging components with different functions into one, allowing for lightweight and compact designs to be achieved by packaging application processors (APs), memory, sensors, etc., into a single unit. Simmtech intends to increase its market share in the wearable market, including smartwatches and earsets, with SiP boards.

Simmtech is expected to benefit from the recovery in the memory semiconductor industry and the increasing demand for FC-CSP in the second half of this year. The company previously forecasted annual results of 1.34 trillion won (7.2 billion yuan) in revenue and 81.4 billion won (4.372 million yuan) in operating profit, which represents a 29% increase in revenue compared to the previous year and a return to profitability.

A Simmtech official stated, "We plan to use all the funds raised last month for domestic investments," adding, "We will focus our investment on expanding FC-CSP and SiP production capacities in response to the growing demand for system IC boards."

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