[News] Micron Launches HBM Facility in Singapore as Samsung and SK hynix Expand Advanced Packaging Investments

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Recently, U.S.-based memory giant Micron Technology announced the groundbreaking of a new HBM (High Bandwidth Memory) advanced packaging facility in Singapore.

This facility will be the first of its kind in Singapore and is scheduled to begin operations in 2026. Starting in 2027, Micron’s advanced packaging capacity will expand significantly to meet the growing demand driven by artificial intelligence (AI). The launch of this facility will further enhance Singapore’s local semiconductor ecosystem and drive innovation.

Micron revealed that it is investing approximately $7 billion (equivalent to around 51.32 billion RMB) in the HBM advanced packaging sector, creating approximately 1,400 jobs initially. With planned future expansions, the facility is expected to create approximately 3,000 jobs, including positions in packaging development, assembly, and testing.

Memory Giants Intensify Efforts in HBM Advanced Packaging

In addition to Micron, the other two major players in the HBM market, SK hynix and Samsung Electronics, have also increased their investments in advanced packaging in recent years.

For SK hynix, its most closely watched project is the construction of an advanced packaging facility in the U.S. In April 2024, SK Hynix announced plans to establish an AI-optimized memory advanced packaging production facility in West Lafayette, Indiana, USA.

The company also plans to collaborate with local research institutions on semiconductor R&D, with an estimated investment of $3.87 billion.

SK Hynix expects the Indiana facility to begin mass production of next-generation AI-oriented HBM memory products in the second half of 2028. The project has secured $458 million in funding from the U.S. Department of Commerce, along with a loan of up to $500 million from the U.S. CHIPS program office.

Meanwhile, Samsung Electronics is also expanding its investments in advanced semiconductor packaging both domestically and internationally, with a focus on China, Japan, and South Korea.

China: Samsung has already established a testing and packaging facility in Suzhou, which serves as one of its most critical overseas production bases.

Japan: Samsung is setting up an Advanced Packaging Lab in Yokohama, dedicated to developing next-generation packaging technologies for high-value applications such as HBM, AI, and 5G technologies.

South Korea: Samsung is expanding its semiconductor packaging plant in Chungcheongnam-do to boost HBM production. The expansion is expected to be completed by December 2027 and will include advanced packaging production lines for HBM chips.

HBM5 20-Hi Stack and the Rise of Hybrid Bonding Technology

Current advanced packaging technologies primarily include Micro Bump stacking and Hybrid Bonding. While Micro Bump stacking is widely adopted, Hybrid Bonding eliminates the need for bumps, allowing for higher stack counts, thicker die layers, and improved warpage control.

Although Hybrid Bonding does not yet demonstrate significant advantages over Micro Bump, it offers faster data transmission and better heat dissipation, making it increasingly popular in the industry.

According to a research report by TrendForce, considering stacking height limitations, IO density, and thermal requirements, the three major HBM manufacturers are expected to adopt Hybrid Bonding for the HBM5 20-Hi generation.

TrendForce believes adopting Hybrid Bonding could alter the business model of HBM production. The wafer-to-wafer stacking process requires precise alignment of die sizes between the HBM base die and memory dies.

As GPU/ASIC companies often design the base die, TSMC, which provides base die design and wafer foundry services, could play a pivotal role in stacking base dies with memory dies. This could impact HBM manufacturers’industry position in areas such as base die design, stacking, and order fulfillment.

However, Hybrid Bonding also presents challenges, such as particle control issues, higher unit investment costs, and efficiency concerns due to the wafer-to-wafer stacking process. If front-end production yields are too low, the overall process may not be economically viable.

Industry experts suggest that as manufacturers navigate the HBM market, the choice of advanced packaging technology must balance practical considerations such as funding, technical capabilities, and broader strategic factors.

(Photo credit: Micron)