LG enters chip packaging arena with Laser Direct Imaging machine, as TSMC's CoWoS remains constrained

LG Electronics has entered the semiconductor packaging arena by signing a contract with an outsourced semiconductor assembly and test (OSAT) company to supply a maskless laser direct imaging (LDI) lit... Read original →

LG’s entry into chip packaging signals a strategic move into the semiconductor equipment supply chain. Its LDI technology bypasses conventional photolithography, enabling high-yield metal interconnect patterning for PCBs and packaging, with real-time pattern adjustment capabilities. While not yet matching TSMC’s CoWoS resolution, it offers a cost-effective alternative to established players like KLA and ORC. Technologically, LDI may accelerate integration with nanoimprint and e-beam lithography, pushing packaging toward higher density. From a compliance standpoint, export controls in China Taiwan/ Taiwan, China and the U.S. pose risks for global market access. In competitive dynamics, TSMC and NVIDIA may leverage this to negotiate lower pricing, while OSATs like Screen Holdings and Limata may hasten innovation. Over the next 12-24 months, LDI tools could become a key enabler for packaging capacity expansion, especially amid surging demand for AI chips and data center solutions, where cost efficiency will be decisive.