Licheng accelerates its transition to advanced packaging! Become the main growth engine for revenue next year

Packaging and testing major PowerCheng (6239) held a press conference today (27th). Cai Dukong, chairman of PowerCheng, said that with the growth of the AI ​​chip market, PowerCeng's revenue growth engine will gradually shift to 2.5D and 3D heterogeneous integration, as well as advanced packaging applications such as co-packaged optics (CPO) and high-end FCBGA from 2027, to reshape the business structure.

Cai Dukong pointed out that the current progress of advanced packaging plant expansion is as planned. Related products include AI chips, optical engines (Optical Engines), CPUs, and DRAM using through-silicon via (TSV) interconnects. All verifications have been carried out smoothly, and the mass production plan remains unchanged.

PowerCheng currently includes advanced packaging businesses such as FCBGA, fan-out packaging, and panel-level packaging, accounting for more than 30% of its revenue. Cai Dugong said that in the past, PowerCheng's revenue was highly dependent on standard DRAM and NAND Flash packaging. Driven by the demand for AI applications, PowerCheng's core technology and revenue growth engine will gradually shift to 2.5D and 3D heterogeneous integration, as well as co-packaged optics (CPO) and high-end FCBGA from 2027. In the future, it will reshape its business structure with advanced solutions with high gross profit and high technical threshold.

In terms of customer layout, Cai Dukong pointed out that in addition to traditional integrated component manufacturing companies (IDMs), Lizheng's customer development list has also further expanded to include AI chip cloud service providers (CSP), first-tier IC design companies and AI chip manufacturers.

As for capital expenditure and investment strategy, Cai Dukong said that Licheng is shifting from traditional packaging to panel-level packaging infrastructure and advanced technology research and development. Therefore, it is actively building panel-level packaging, 3D IC, CPO and other related high-end equipment, and investing funds and engineering R&D resources in the field of advanced packaging.

In addition, Licheng has also adjusted its overseas asset layout, including adjusting the ownership structure of traditional Chinese packaging plants to streamline its operating structure and fully focus its investment on high-end advanced manufacturing bases in Taiwan. As for the Singapore joint venture, it is still under review by the Investment Review Department of the Ministry of Economic Affairs.

Cai Dugong emphasized that the AI ​​wave has changed PowerCheng's long-term layout in advanced packaging technology, and it is actively transforming from a traditional professional packaging factory to an advanced packaging partner in the AI ​​era.