Core Viewpoint - The article emphasizes the critical importance of photoresist materials in the semiconductor industry, highlighting the need for domestic breakthroughs in China's photoresist production due to geopolitical challenges and technological gaps with international standards [1]. Group 1: Industry Overview - Photoresist is a key material in lithography processes, directly affecting the yield and reliability of electronic devices [1]. - China's photoresist industry has developed slowly due to a late start, resulting in significant technological gaps compared to international standards [1]. Group 2: Company Developments - Feikai Materials has made significant progress in the semiconductor photoresist sector, focusing on i-line photoresist and KrF-compatible Barc materials, which address industry pain points such as standing wave effects [2]. - The company has successfully achieved stable mass production of its products, which have passed customer validation and are now in practical application [2]. Group 3: Financial Performance - Feikai Materials expects a net profit attributable to shareholders to grow by 42.07% to 84.69% in 2025, with a net profit excluding non-recurring gains and losses expected to increase by 35.58% to 76.25% [2][3]. - The semiconductor materials business has significantly benefited from a surge in downstream demand, leading to a notable performance improvement [3]. - The company has developed advanced packaging materials, including advanced packaging photoresist and temporary bonding adhesives, to meet long-term customer needs and support revenue growth [3].

Core Insights - The bumping process is increasingly integral to high-density packaging technologies, driving advancements in interconnect density and miniaturization [1][3] - Bumping technology is evolving from C4 bump to finer pitch bumps, microbumps, high copper pillars, and even to bump-less bonding techniques [1][3] Industry Trends - Bumping technology is utilized across a wide range of mid-to-high-end packaging applications, including smartphones, consumer electronics, automotive electronics, and high-performance computing [3] - Bump-less bonding technology is currently limited to specific high-end applications such as HBM5, 3D NAND, 3D CIS, 3D DRAM, 3D SOC, and Micro LED, primarily completed in wafer fabrication rather than packaging [3]

Core Viewpoint - The article discusses the rapid growth of the high-end PCB market driven by the explosion of AI technology and the increasing demand for advanced PCB manufacturing equipment, particularly in drilling processes [3][11]. Industry Overview - The global infrastructure for computing power is accelerating, leading to a surge in demand for high-end PCBs as tech giants expand their AI infrastructure [3]. - The PCB equipment industry is experiencing expansion opportunities, with rising demand across various equipment segments [3]. Drilling Process and Technology - The drilling process in PCBs involves creating conductive holes that connect layers, primarily using mechanical and laser drilling technologies [3]. - Mechanical drilling is typically used for through-holes, while laser drilling is more suitable for blind and buried holes due to its higher precision [8]. - The latest advancements in mechanical drilling include CCD drilling machines that utilize visual positioning for automated depth and speed control, while ultra-fast laser drilling machines represent the cutting-edge in laser technology [8]. Market Size and Growth - The global PCB equipment market is projected to reach approximately $7.085 billion (around 50.6 billion RMB) in 2024, with a compound annual growth rate (CAGR) of about 4.9% from 2020 to 2024 [11]. - By 2029, the market is expected to grow to $10.765 billion (approximately 76.9 billion RMB), with drilling equipment accounting for about 20.7% of the total market value [11]. Competitive Landscape - Key players in the drilling equipment market include Mitsubishi, Hitachi, ESI, Schmoll, and domestic companies like Dazhu CNC and Suzhou Weijia, each known for their specific technological advancements and product offerings [16][17]. - Dazhu CNC is focusing on high-precision drilling machines, while Suzhou Weijia plans to increase its production capacity significantly [17][18]. Equipment Classification and Comparison - The article provides a detailed comparison of mechanical and laser drilling machines, highlighting their respective advantages and limitations in terms of cost, precision, and application suitability [9].

Core Viewpoint - The article discusses the growth and dynamics of the PCB (Printed Circuit Board) industry, particularly focusing on the demand for copper-clad laminates (CCL) driven by advancements in AI applications and the increasing need for high-speed, high-frequency materials [3][13]. Industry Overview - PCB is referred to as the "mother of electronic products," serving as a carrier for electrical connections and functional integration of electronic components. The demand for PCBs is influenced by the terminal market, showing a stable growth trend [3]. - The cost structure of PCBs reveals that copper-clad laminates account for approximately 27.30% of the total cost, making them a crucial substrate in PCB manufacturing [3]. Market Segmentation - CCL can be classified based on material and structure, with different categories suitable for various applications, including communication devices, consumer electronics, and automotive electronics [10]. - High-frequency and high-speed CCLs are emerging to meet the demands of AI applications, characterized by high signal transmission speeds (10-50 Gbps) and low loss [11]. Market Size and Growth - The global AI application CCL market is projected to reach approximately $2.4 billion by 2025, $5.8 billion by 2026, and $18.7 billion by 2027, with a compound annual growth rate (CAGR) of about 18% from 2024 to 2027. The high-speed CCL market is expected to grow at a CAGR of 40%, significantly outpacing the average growth rate of the CCL market [13]. Competitive Landscape - The global CCL production capacity is primarily concentrated in Asia, with Taiwanese and Japanese companies holding significant market shares. The high-end CCL market is dominated by Taiwanese and Japanese manufacturers, while mainland Chinese companies are expected to ramp up production starting in 2026 [13]. - Key players in the CCL industry include companies like Shengyi Technology, Nan Ya Plastics, and Panasonic, each with unique strengths and market positions [17]. Recent Developments - Shengyi Technology plans to invest 4.5 billion yuan in a high-performance CCL project by 2026 [18]. - Jinan Guojiji has approved a fundraising plan to raise 1.557 billion yuan for a high-grade CCL project and R&D center [18]. - Nan Ya Plastics intends to raise up to 900 million yuan for the development of high-frequency CCLs based on AI computing power [19]. - Huazheng New Materials has recently added a high-end production line, increasing its capacity to 14 million sheets per year [19].

Core Viewpoint - The rapid growth in demand for servers and switches driven by AI infrastructure is leading to a surge in the need for high-end PCB products such as HDI and high multilayer boards, which are essential for meeting the high load and high-frequency operation requirements of AI applications [2][10]. Group 1: HDI Boards - Definition and Function: HDI boards are high-density interconnect printed circuit boards that achieve complex circuit functions in smaller spaces through higher wiring density and advanced structures like buried and blind vias [3]. - Application Scenarios: HDI boards are crucial for miniaturizing and enhancing the performance of electronic products, widely used in smartphones, 5G base stations, and autonomous vehicles [5]. Group 2: High Multilayer Boards - Definition and Function: High multilayer boards typically have more than 10 layers and are designed to provide sufficient wiring channels and stable electrical environments for complex, high-speed signal systems [6]. - Application Scenarios: These boards are essential components in high-end servers, core communication devices, and applications requiring high reliability, such as aerospace and supercomputers [9]. Group 3: Market Development and Competitive Landscape - Market Growth: The global PCB market is projected to reach $98.4 billion by 2027, with an 8-year CAGR of 6%. In China, the PCB market is expected to grow from 226.7 billion yuan to 346.9 billion yuan from 2019 to 2024, with a 5-year CAGR of 9% [10]. - Competitive Landscape: Leading companies in Japan and Taiwan dominate the high-end PCB and HDI sectors, while top Chinese manufacturers are rapidly emerging in the high-speed multilayer board market [10]. Group 4: Key Domestic Enterprises' Latest Developments - Shenghong Technology: The company is expanding its production capacity for high-end HDI and multilayer PCBs across multiple locations, including factories in Huizhou, Thailand, Vietnam, and Malaysia [13]. - Dongshan Precision: The company has announced a $1 billion investment plan for Multek, with approximately $200 million already invested in upgrading existing facilities [13]. - Shennan Circuit: The company has eight ongoing projects with a total investment of about 17 billion yuan, focusing on high-layer boards and HDI technology [13]. - Unimicron Technology: The company plans to invest 4.3 billion yuan in a project for high-end PCBs to meet the long-term demand from AI and high-speed computing applications [14].

Core Viewpoint - The article discusses the strategic development and financial performance of Xiamen Hongxin Electronic Technology Group Co., Ltd., highlighting its transition towards AI computing and flexible electronics, showcasing significant revenue growth and profitability improvements in recent quarters [3][4][6]. Business Segment Development Flexible Printed Circuit (FPC) Business - The FPC business achieved revenue of 28.03 billion yuan in the first three quarters of 2025, with a gross margin improvement to 9.27%, up from 1.06% in 2023, marking a successful turnaround [4][5]. - Key drivers for improvement include favorable external conditions from AI smartphones and domestic market recovery, internal reforms enhancing operational efficiency, and breakthroughs in high-end product segments [5]. - The company is expanding its FPC business globally, establishing production bases in Vietnam and Thailand to mitigate market risks and enhance competitiveness [5]. AI Computing Business - The AI computing segment generated revenue of 14.82 billion yuan in the first half of 2025, a year-on-year increase of 33.85%, making it the largest business segment, accounting for 42.88% of total revenue [6]. - Core growth drivers include server production, significant growth in computing resource leasing services, and leading advantages in liquid cooling technology [6]. - The company has established a smart manufacturing base for AI servers and is focusing on enhancing delivery efficiency through innovative technologies [6]. Strategic Direction - The company's future strategy revolves around a "flexible electronics + green computing" dual-drive model, focusing on high-end FPC and global expansion [7]. - Goals include increasing the gross margin of FPC from 9.27% in 2025 to over 25%, accelerating global capacity layout, and deepening collaborations with AI terminal manufacturers [7][8]. - The AI computing business aims for scalable growth, with targets of 100,000 PFlops by the end of 2025 and 300,000 PFlops by the end of 2026, alongside expanding the high-margin computing service business [7][8].

Core Viewpoint - The semiconductor TGV technology is gaining attention in the industry, but large-scale application in China is not expected until the end of 2025, as the industry awaits a technological breakthrough to unlock its potential [2][6]. Group 1: Current Applications and Market Potential - The largest current application for semiconductor TGV technology is in micro-nano processing devices, accounting for 73% of the market, primarily in various physical quantity sensors such as pressure and inertial sensors [4]. - RF devices are the first to be industrialized within the potential scenarios of TGV technology, but their market contribution is limited. Future growth will be driven by advanced packaging applications like CPO and storage-computing chips [5]. - By 2030, if breakthroughs in glass core packaging substrates occur, it will significantly enhance the integration technology routes for CPO and storage-computing chips [5]. Group 2: Challenges and Competitive Landscape - TGV technology shows strategic potential in the Mini LED/Micro LED display sector, but market penetration remains uncertain. The main focus for TGV in MLED applications is on glass-based MiP packaging and glass-based PCB backplanes [5]. - MLED products are accelerating their development of TFT glass substrates and MLED modules, influenced by the traditional LCD/OLED supply chain, which poses a significant challenge to TGV technology in the MLED space [5]. Group 3: Future Outlook - The large-scale industrialization of TGV technology is not expected until 2025, but this period marks the initial emergence of potential application scenarios. Domestic TGV technology projects are primarily focused on panel-level types, projected to account for 70% by 2025 [6]. - As product yield improves and substrate sizes increase, the market share for TGV technology is expected to expand to 80% by 2030, although wafer-level TGV technology will maintain a stable market in specific microelectronic device integration areas due to existing production line equipment and processes [6].

Core Viewpoint - The article discusses the significant growth and transformation of the display panel industry in mainland China, highlighting the shift towards advanced packaging technologies like FOPLP (Fan-Out Panel Level Packaging) as companies seek new growth opportunities amidst declining traditional panel sales [2][4]. Group 1: Industry Overview - Mainland China has become the largest display panel manufacturing center globally, with a projected LCD panel capacity market share of 75% by 2028 [2]. - In 2025, the total shipment of television sets in China is expected to decline by 8.5% year-on-year, with a notable drop of 16.9% in the second half of the year [2]. - Taiwanese and Japanese/Korean LCD panel companies are optimizing their capacities and exploring new growth areas due to the impact of government subsidies and market conditions [2]. Group 2: Company Focus - Innolux Corporation - Innolux Corporation is shifting part of its focus to non-display panel businesses, particularly FOPLP technology, which has begun mass production with monthly output in the millions [2][5]. - The company aims to achieve a non-panel revenue share of approximately 11-15% by 2025 [5]. - Innolux's revenue for December 2025 is reported at NT$ 214 billion (approximately RMB 47.18 billion), marking a 25.18% month-on-month increase and a 19.22% year-on-year increase [7]. Group 3: FOPLP Technology Insights - FOPLP technology allows for higher chip placement efficiency, with theoretical board-level substrate utilization rates exceeding 95%, leading to significant cost advantages, with packaging costs potentially reduced by at least 50% compared to wafer-level packaging [9]. - The technology is primarily based on glass substrates, with applications in power management and RF chips, and is expected to expand into AI chip markets in the coming years [9][10]. - Challenges include compatibility issues due to the lack of standardization in panel sizes and technical difficulties related to panel warping and precision during the packaging process [10]. Group 4: Market Trends and Competitors - Major companies like NVIDIA and AMD are showing strong interest in FOPLP technology, indicating a growing market demand [10]. - A comprehensive overview of companies involved in FOPLP technology development includes major players like TSMC, ASE, and BOE, each with specific advancements and timelines for production [10][11].

Core Viewpoint - The advanced packaging market is experiencing significant growth driven by the increasing demand for AI and computing power, leading to a supply-demand imbalance in the global advanced packaging market, which is projected to reach approximately $45 billion in 2024, accounting for about 55% of the total semiconductor packaging market [2]. Market Growth - The global advanced packaging market is expected to grow to around $80 billion by 2030, with a compound annual growth rate (CAGR) of 9.4% from 2024 to 2030, becoming a core component in the value upgrade of the semiconductor industry [2]. - The Chinese advanced packaging market is predicted to reach approximately 39.9 billion RMB in 2022, with a CAGR of about 15%, significantly higher than the global average growth rate, indicating a "blue ocean" market potential [2]. Key Materials Demand - DAF films and underfill materials are essential in packaging processes, with DAF films used to connect chips to substrates and underfill materials widely applied in FC and BGA packaging processes to ensure reliability and stability [3]. - The Chinese DAF film market is expected to exceed 1 billion RMB by 2026, with a CAGR exceeding 12% [3]. - The global underfill market is projected to grow at a CAGR of 10.48%, reaching $721 million in 2024 and surpassing $1.443 billion by 2031, with China's market performance expected to exceed the global average [3]. Domestic Market Landscape - The DAF film and underfill markets are currently dominated by foreign companies, with domestic firms like Debang Technology, Yonggu Technology, and others just beginning to enter the DAF film market [5]. - Debang Technology is leading in domestic production, with its underfill materials solutions continuously improving and achieving small batch deliveries by mid-2025 [9]. - Other domestic companies, such as Hans New Materials and Yonggu Technology, are also making strides in the underfill product line, with Hans focusing on chip packaging adhesives [13]. Production Capacity - Debang Technology has achieved small batch deliveries of DAF products, while other companies like Yonggu Technology have limited production capacity for DAF films [13]. - The emerging player, Juting Xincai, is expected to enhance local supply chain convenience and contribute to the localization of advanced packaging materials, aligning with the explosive growth in computing power demand [13].

Core Viewpoint - The article emphasizes the transformative potential of Laser-Induced Deep Etching (LIDE) technology in the semiconductor packaging industry, particularly in utilizing glass as a substrate for advanced packaging solutions. This technology addresses the increasing demands for high-density interconnections, efficient thermal management, and mechanical stability in semiconductor devices [2][19][22]. Group 1: Market Demand and Technological Advancements - The semiconductor industry's shift towards high-end chips like AI and HPC is driving the need for advanced packaging technologies that require higher bandwidth, lower power consumption, and smaller sizes [2]. - Glass is gaining attention as a promising material for semiconductor packaging due to its excellent thermal stability, electrical insulation, and optical transparency [3][19]. - There is a pressing demand for glass microstructures, including through-glass vias (TGV), blind vias, and microchannels, which are crucial for thermal management and high-density interconnections [2][3][19]. Group 2: Limitations of Traditional Glass Processing Techniques - Traditional glass processing methods, such as mechanical drilling and wet etching, have significant limitations, including the generation of defects, limited aspect ratios, and scalability issues [4][6]. - Mechanical drilling can induce high mechanical stress, leading to micro-cracks and compromised structural integrity [4]. - Wet etching methods struggle with aspect ratio control and are not suitable for mass production due to their complexity and cost [4][6]. Group 3: Advantages of LIDE Technology - LIDE technology combines laser modification and chemical etching to achieve high-precision glass microstructure fabrication, allowing for the creation of deep, narrow structures without defects [11][16]. - The two-step process of LIDE involves laser modification followed by wet etching, enabling the formation of complex microstructures with high aspect ratios and mechanical strength [10][11][16]. - LIDE technology supports the integration of various microstructures, such as TGVs, microchannels, and blind vias, on a single glass substrate, enhancing the functionality of semiconductor packages [13][19][22]. Group 4: Implications for Semiconductor Packaging - The integration of multiple microstructures using LIDE technology addresses the challenges of thermal management and sensor integration in high-power semiconductor devices [19][22]. - The formation of microstructures in glass substrates necessitates new requirements for the semiconductor supply chain and process integration, particularly in adapting back-end assembly and bonding technologies [20][22]. - Collaboration among material suppliers, equipment manufacturers, and semiconductor companies will be crucial for developing reliable and efficient processing systems as the industry transitions to complex glass substrate packaging [20][22]. Group 5: Future Outlook - LIDE technology is positioned to become a core driver of next-generation packaging technologies, solidifying glass materials' status as a mainstream substrate in high-end packaging applications [22].