Hanmi Semiconductor, a South Korean manufacturer of equipment used to assemble and package chips, is stepping up its push into the artificial intelligence market. The company announced plans to develop a second-generation hybrid bonder prototype by the end of this year and to establish a US subsidiary in the second half of 2025, according to a stock-exchange filing on Monday.
Hybrid bonding is a technique used to stack chips vertically, creating tighter connections and better performance. It is increasingly important for advanced packaging, the final stage of chip manufacturing where individual dies are connected and sealed. For AI accelerators and high-bandwidth memory (HBM), which are critical components in data centers running large language models, this packaging step can determine overall speed and power efficiency.
Two-Track Strategy: New Tools and a US Base
Hanmi's filing outlined a dual focus: expanding its product lineup for advanced packaging and getting physically closer to US customers who are building new factories, often called fabs, dedicated to AI chips. The centerpiece of the technology push is the second-generation hybrid bonder, which the company expects to have a prototype ready by the end of this year. Commercial factory operations for that machine are targeted for early 2027.
Beyond the hybrid bonder, Hanmi also flagged additional bonding tools designed specifically for stacked memory and AI systems. These tools are part of a broader trend in the semiconductor industry, where traditional chip scaling is slowing, and manufacturers are turning to advanced packaging to improve performance without shrinking transistors further.
The US subsidiary plan reflects a strategic move to serve American chipmakers and fabless companies that are investing heavily in domestic production capacity. The US Chips Act, passed in 2022, has spurred a wave of new factory construction, and equipment suppliers like Hanmi are positioning themselves to support those facilities. This is similar to moves by other South Korean chip-equipment firms, which have been expanding their global footprints to capture demand from US and European customers.
Context: AI Chip Demand and Market Dynamics
The announcement comes at a time when AI-related spending is under scrutiny. Earlier this year, South Korea's KOSPI plunged 5% amid doubts about AI spending and an oil price shock, highlighting the volatility in markets tied to the AI trade. However, long-term demand for advanced packaging equipment remains robust, driven by companies like Nvidia, AMD, and Intel, which rely on such tools to produce their latest AI accelerators.
Hanmi's focus on hybrid bonding also aligns with the needs of high-bandwidth memory, a type of memory that stacks multiple DRAM chips vertically. HBM is a key component in AI systems, and its production requires precise bonding equipment. The company's new tools could help memory makers like Samsung and SK Hynix, both based in South Korea, improve yields and performance for their HBM products.
The broader semiconductor equipment market has seen increased competition, with companies from Japan, the Netherlands, and the US also vying for a share. Hanmi's move to establish a US subsidiary could give it an edge in winning contracts from American chipmakers that prefer local suppliers for service and support.
What It Means for Investors
For everyday investors, Hanmi's announcement signals that the AI infrastructure buildout is still in its early stages, and equipment makers stand to benefit as chip companies ramp up production. However, it's important to note that the timeline for the new hybrid bonder—commercial operations in early 2027—means revenue from this product is years away. Investors should focus on the company's ability to execute on its current product lineup and win orders from major customers in the near term.
The US subsidiary plan also carries risks. Setting up a new base requires capital and management attention, and geopolitical tensions between the US and China could affect supply chains. South Korean companies have faced scrutiny in the past, as seen in a recent price-fixing probe into memory interface chip suppliers. Investors should monitor regulatory developments and Hanmi's quarterly earnings for signs of progress.
In summary, Hanmi Semiconductor is making a calculated bet on the future of AI chips and advanced packaging. While the payoff may take years, the direction is clear: the company is aligning its technology and geographic footprint with the biggest growth area in semiconductors. For now, the market will watch for prototype milestones and customer announcements as indicators of success.
