Samsung Electronics vice chairman Lee Jae-yong visited the company’s semiconductor assembly plant in Onyang, South Chungcheong Province, on Aug. 6 as the first destination for his on-spot management after Japan excluded South Korea from its trade whitelist.
Lee visited the Onyang plant to check its semiconductor development and packaging system. After a tour of the plant, he held a meeting with top executives of the company and had lunch with them at the cafeteria in the building.
The Onyang plant is in charge of semiconductor back-end processes, ranging from packaging development to production and inspection. As DRAM, NAND and foundry memory chips produced at Giheung, Hwaseong and Pyeongtaek plants are carried over to the Onyang plant, it is considered the last phase of Samsung Electronics’ semiconductor value chain.
The visit came after Japan announced Korea's delisting as a favored trade partner last week. Before embarking on the tour, Lee convened a meeting with CEOs of semiconductor, display and television units and heads of Samsung's electronic affiliates, such as Samsung Electro-Mechanics and Samsung SDI, on Aug. 5 and announced his intention to visit plants starting Aug. 6.
Lee chose the Onyang plant as his first destination because he wanted to see in person if Japan’s export curbs are affecting the final stages of semiconductor production. In addition, Lee checked the current status of stabilization and synergy of the company’s panel level packaging (PLP) business which was acquired from Samsung Electro-Mechanics for 785 billion won (US$647.16 million) in June.
The PLP business is a next-generation semiconductor packaging system which connects semiconductors and main boards without printed circuit boards (PCB). Samsung Electro-Mechanics operated the PLP business at the Cheonan plant but Samsung Electronics took over the business and transferred to the Onayang plant to improve the efficiency of its semiconductor packaging business.