Lam Research (NASDAQ:LRCX) announced Thursday it closed the acquisition of the semiconductor equipment provider, SEMSYSCO GmbH, from Grünwald Equity as previously announced.
By adding SEMSYCO, Lam picks up capabilities in advanced packaging for computer chips and chiplet based solutions for data intensive applications like high performance computing and artificial intelligence.
Additionally, the acquisition broadens Lam’s packaging offerings by adding a cleaning and plating capabilities for chiplet-to-chiplet or chiplet-to-substrate heterogenous integration. Heterogenous integration is the combination of separately manufactured components into one assembly that when put together improves functionality. This approach gives chipmakers opportunity to increase yield and reduce waste. The difference between chips and chiplets are that chips take all the components on it as a whole while chiplets compartmentalize components into smaller functions that are combined onto a larger processor.
“Packaging plays an important role in extending Moore’s Law and enabling future leadership products with higher levels of system in package integration. New substrate-based panel-level approaches are vital to cost-effectively realizing the high-performance chiplet-based solutions needed for the digital world,” said Keyvan Esfarjani, chief global operations officer at Intel Corporation.
Semiconductor supply shortage is a ‘significant challenge’
The demand for integrated circuits (also called semiconductor chips) still exceeds the supply, which affects over 169 industries. It’s led to major price increases, shortages queues and scalping for automobiles, graphics cards, video game consoles, computers and more. It’s been going on since the COVID-19 pandemic disrupted supply chains and logistics, and the demand for PC’s rose 13 per cent courtesy of the shift to a work-from-home economy.
Lam Research Corporation supplies wafer fabrication equipment and services to the semiconductor industry. Specifically, Lam’s equipment and services give customers the ability to build smaller devices with enhanced performance.
The acquisition of SEMYSCO also brings Lam a research and development facility in Austria working on substrates and heterogenous packaging. A substrate is the supporting material in which the elements of a semiconductor device are fabricated or attached. It’s a piece of material forming a supporting base for film circuit elements and maybe additional components if any.
The addition widens the company’s development capabilities in Europe and adds a sixth laboratory to Lam’s global network. Also, it brings Lam the opportunity to network with chipmakers and fabless customers.