Xinke: Fan-Out Panel-Level Packaging Metal Substrates to See Volume Shipments in Q4

(CNA) July 3, 2024, Taipei) Xinke Materials Technology Chairman Lee Jian-hui stated today that the company has become the sole technically licensed and recognized supplier for fan-out panel-level packaging (FOPLP) metal substrates, and has successfully extended its product line to wafer carriers. While the fan-out panel-level packaging market saw high discussion intensity in the first half of the year, volumes did not meet expectations. Volume shipments are anticipated in the fourth quarter after passing certification with European and American clients.

Speaking at a financial results conference today, Lee Jian-hui pointed out that Innolux Corporation (3481), a panel manufacturer investing in fan-out panel-level packaging technology, is a client. In addition to Innolux, Xinke has submitted 100 to 200 metal substrates for certification by European and American clients, aiming to further penetrate the market for metal substrates required for fan-out packaging in the semiconductor and low-earth orbit satellite industries.

Lee Jian-hui believes that semiconductor manufacturers not only require fan-out panel-level packaging with high square utilization but will also fully utilize existing wafer fabrication plants to produce fan-out wafer-level packaging. Therefore, Xinke Materials can provide qualified metal substrates for both the square substrates of panel-level packaging and the circular substrates of wafer-level packaging.

In addition to its optimistic outlook for the FOPLP metal substrate market, Xinke Materials has also become the exclusive supplier of deceleration materials for accelerator-based boron neutron capture therapy (AB-BNCT), ready to provide services whenever medical institutions have demand.

Xinke Materials explained that from 2000 to 2005, the company started with silver, aluminum, and dielectric targets for optical discs. From 2006 to 2020, it focused on panels, expanding to decorative plating, passive components, and aluminum, molybdenum, copper, and titanium targets for quartz oscillators. From 2021 to 2023, it began developing targets for semiconductors, with a strategy of moving from downstream to upstream processes, from small to large dimensions, covering pure silicon and compounds. In 2024, in addition to entering the aluminum-based composite materials for medical use, it has also ventured into special alloys of titanium and nickel, and iron-nickel (Fe-Ni) alloy substrates for panel-level fan-out packaging.

Furthermore, Xinke Materials stated that following the acquisition of Chung Steel Precision Materials in 2024, it has expanded its product portfolio to include titanium alloys and nickel-based special alloys, enhancing product diversity. However, driven by rising risk aversion and strong industrial demand between the first quarter of 2025 and 2026, precious metal prices and sales volumes have both increased, leading to a higher proportion of precious metals in the product mix.

Xinke Materials noted that since 2026, China's economic recovery momentum has been weaker than expected, with slower growth in real estate, petrochemicals, and general industrial investment, and weak end-market demand continuing to affect manufacturing development.

Xinke Materials explained that while the titanium market is supported by rising sponge titanium prices, keeping overall prices in a high-level fluctuation, downstream demand has not significantly recovered, and market competition remains fierce. The nickel-based alloy market is affected by overcapacity, insufficient demand, and low-price competition, making it difficult for product selling prices to fully reflect raw material cost fluctuations, resulting in a very severe overall operating environment.

Xinke Materials stated that in the face of market challenges, Chung Steel Precision continues to deepen its product structure adjustment and technological upgrades, stably developing its core business of titanium and titanium alloys, actively promoting high-margin products and the development of large-scale crude pipe markets, and accelerating the development of semiconductor targets, high-value-added products, and niche nickel-based alloy products. (Editor: Chang Chun-mao) 0703

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