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Taiwan-based IC substrate maker Kinsus Interconnect Technology plans to restore a fire-hit flexible PCB (FPCB) plant in Hsinchu, northern Taiwan, and convert it to produce ABF substrates aiming to expand the company's overall ABF substrate production capacity by 30% in 2021.
Kinsus originally planned to purchase a plant complex in Yangmei, northern Taiwan, from the now-defunct panel maker Chunghwa Picture Tubes (CPT) to house new production lines for ABF substrates, but the procurement deal has hit a snag as CPT has been deeply mired in disputes with creditors, according to industry sources.
To meet ever-increasing demand for ABF substrates, Kinsus has decided to set up new capacity at a plant operated by its affiliated FuYang Technology, which has been idled since early October 2020 after a fire hit, the sources said.
Kinsus and Pegatron jointly set up FuYang in 2016 seeking to expand partnerships with Apple by offering FPCB, but the joint venture has seen limited room of development in an Apple supply chain already comprising FPCB vendors Zhen Ding Technology, Flexium Interconnect and Career Technology, the sources said, adding that both major shareholders have decided to close FPCB production after the fire and convert the facilities for ABF substrate production.
Kinsus now delivers ABF substrates mainly to Xilinx for processing 5G base station chips and to Nvidia for packaging diverse GPUs, with orders from both clients increasing steadily. This, coupled with its efforts in exploring new clients and applications, has necessitated fast capacity expansion for high-end IC substrates, the sources noted.