Apple Supplier LG Innotek plans to produce High-End Flip-Chips in 2023 likely aimed for Apple's M-Series Processors
In late November, it was revealed that Samsung Electro-Mechanics has been Apple's number one source for the M1 Chip's flip-chip ball grid array (FC-BGA) with secondary sources being Japan’s Ibiden and Taiwan’s Unimicron.
A flip chip BGA is a specific type of ball grid array that makes use of a controlled collapse chip connection, or flip-chip. Flip chips are useful for high-frequency applications because the chip rests right on the circuit board and is quite small, so there is less inductance and signal speeds can be higher. They also have better moisture resistance and thermal conductivity. This process is often considered a desirable alternative to standard wire bonding BGA packages.
The report further noted that as Apple plans to expand applying M series of chips to its products, Samsung Electro-Mechanics can be expected to continue supplying FC-BGA and used in the chips.
While Samsung is Apple's leading supplier flip chips (FC-BGA) today, a new report by The Elec reveals that Apple supplier LG Innotek has decided to enter this high-end semiconductor board market. LG will spend US$347 million on new equipment that could begin production in 2023, just as Apple begins to push M2 processors to market in larger numbers.
Apple is never pleased having to rely on a single major source for components and LG Innotek likely didn't make the decision to enter this high-end market without having a major customer like Apple on board to justify the investments.