On Friday the 8th, the price of memory package boards, a key semiconductor component, is again on an upward trend, prompting major firms such as Daeduk Electronics and Simtek to announce plans for new facilities worth several hundred billion Korean won. This move directly reflects the rapid rise in demand for AI data centers and high‑performance computing devices that require large amounts of memory.
According to Hana Securities’ analysis, while there had been a brief price increase reflecting the rise in core raw material costs such as gold and copper, this time the demand for memory required by AI‑centric data centers has multiplied, adding pressure across the supply chain. In particular, the demand for high‑performance memory such as DRAM and NAND flash is exploding, prompting major IDM (Integrated Device Manufacturer) companies to adopt new technologies and facilities.
Hana Securities foresees that shortages of BT boards used between semiconductor chips and motherboards will worsen. With the concurrent rise in demand for high‑performance devices such as server controllers for data centers and mobile smartphone processors, global large manufacturers are intensively expanding new facilities such as ABF (Advanced Build Film). In line with this, the production capacity of BT boards is expected to increase to about 1 trillion won level by the end of next year.
Simtek and Daeduk Electronics are currently investing around 2 trillion won in MSAP (Micropatterning Substrate Assembly Production) facilities, planning to expand to over 2.2 trillion won in the latter half of next year. Haesung Dyes invests about 190 billion won to build a production capacity for panel‑based substrate manufacturing, and expects to secure new facilities worth 200–300 billion won annually by 2029.
Given that this expansion is likely to proceed primarily after the second half of next year, customers will need stable supply. With major memory IDMs at center, long‑term contracts or pre‑purchasing moves are likely. Considering the fact that the supply shortage has intensified since the long‑term contract signed by Simtek and Micron in March 2020, it becomes increasingly necessary for major firms to respond to demand from this year end through next year.