SK Group Bets Big on Glass Substrates for AI Packaging
According to reports from the South Korean semiconductor industry, SK Group, the parent company of SK hynix, plans to invest approximately KRW 1.17 trillion (around US$850 million) into glass substrates for panel-level packaging (PLP), highlighting its strong confidence that panel-level advanced packaging will become a major next-generation semiconductor packaging technology.
Industry observers believe the move could further strengthen collaboration opportunities among TSMC, Innolux Corporation, and SK hynix in the rapidly growing AI semiconductor ecosystem, potentially forming a leading strategic alliance in panel-level packaging development.
SK hynix has already become one of TSMC’s key partners in the AI chip market. In 2024, the two companies signed a memorandum of understanding (MoU) to jointly develop next-generation HBM4 memory technology. With SK Group now accelerating investment in panel-level packaging materials and infrastructure, industry attention is increasingly focused on future collaboration opportunities between the companies in advanced packaging technologies.
Among Taiwan-based technology companies, Innolux has been an early mover in panel-level packaging development and has already achieved mass production milestones. Market reports also indicate that Innolux and TSMC may cooperate on panel-level packaging technology projects in Longtan, Taiwan.
At the same time, TSMC continues to actively advance its own panel-level packaging roadmap. The company has branded its panel-level packaging technology as “CoPoS” (Chip-on-Panel-on-Substrate), which replaces traditional round silicon wafers with square glass or organic panel substrates. Industry sources suggest the technology could enter mass production as early as 2028.
Panel-level packaging is widely viewed as a promising next-generation packaging solution for AI and high-performance computing (HPC) applications. Unlike conventional wafer-based packaging, PLP uses square glass substrates that significantly improve material utilization by reducing edge waste associated with circular wafers. Glass substrates also offer advantages in thermal performance, dimensional stability, and higher chip integration density compared with traditional organic or silicon-based substrates.
Major semiconductor companies including Samsung Electronics, Intel, and TSMC are all investing heavily in panel-level packaging technologies as demand for AI accelerators, high-bandwidth memory (HBM), and advanced chiplet architectures continues to expand.
SK Group’s materials subsidiary SKC recently announced plans to raise KRW 1.17 trillion through a rights offering, with approximately KRW 589.6 billion allocated to its U.S.-based subsidiary Absolics over the next three years to support mass production of glass substrates.
The investment is reportedly the largest single financing initiative ever announced in the global glass substrate sector, reflecting growing industry expectations that glass-based panel-level packaging will become a key enabling technology for future AI chips and advanced semiconductor packaging.
Innolux has also continued expanding its fan-out panel-level packaging business. The company reportedly increased monthly output of chip-first fan-out panel-level packaging products by tenfold to more than 40 million units, while maintaining high yields and full production utilization rates.
In addition, Innolux is advancing next-generation RDL interposer (redistribution layer interposer) technologies for large-chip advanced packaging applications. The company has reportedly entered technical validation programs with major packaging customers and is also strengthening development of Through-Glass Via (TGV) technologies to support AI and high-speed computing applications.
Industry analysts believe panel-level packaging is becoming one of the most strategically important advanced packaging technologies as AI-driven semiconductor demand continues to reshape the global chip industry.
