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Business India News Updated Sep 29, 2025

LG Chem develops key liquid material for advanced chip packaging

LG Chem has developed a breakthrough liquid photo-imageable dielectric material for advanced semiconductor packaging. This insulating material creates precise electrical pathways that enhance chip performance and reliability. The eco-friendly formula contains no PFAS or harmful solvents, making compliance with environmental regulations easier. With demand growing for AI and high-performance computing chips, LG Chem aims to challenge Japanese dominance in the PID market.

Seoul, September 29

South Korea's LG Chem Ltd. said on Monday it has developed a liquid photo-imageable dielectric (PID), a key insulating material for advanced semiconductor packaging. The company plans to actively target the artificial intelligence (AI) and high-performance semiconductor markets, according to a report by Pulse, the English service of Maeil Business Newspaper Korea.

PID is a photosensitive insulating material that forms fine circuits connecting semiconductor chips and substrates. It creates electrical signal pathways, enhances circuit precision, and strengthens the performance and reliability of semiconductors, making it an essential material in advanced packaging processes.

The importance of PID is growing, especially for high-performance semiconductors that require denser and more precise circuits. LG Chem's liquid PID enables high-resolution patterning, cures stably even at low temperatures, and features low shrinkage and absorption rates, thereby enhancing process stability. The material also contains no per- and polyfluoroalkyl substances (PFAS) or organic solvents such as N-Methyl-2-pyrrolidone (NMP) and toluene, making it easier to comply with environmental regulations," the report said.

To further penetrate the PID market, currently dominated by Japanese material companies, LG Chem is accelerating the development of film-type PID by leveraging its accumulated expertise in film technology for electronics materials, including displays, semiconductors, and automobiles.

The report stated that the company is collaborating with leading global semiconductor companies on this initiative.

"Industry analysts say demand for PID will rise sharply as semiconductor packaging shifts to larger substrates and finer interconnects to support AI and high-performance computing. LG Chem added that its film PID can maintain uniform thickness and patterns even on large substrates due to its adhesive form," the report said.

With high strength, elasticity, and low moisture absorption, it minimizes cracking even under repeated temperature changes.

It can also be applied without altering existing processes, as substrate manufacturers can use their current equipment.

— ANI

Reader Comments

Rohit P

As someone working in electronics manufacturing, I can appreciate how crucial PID materials are. The fact that it works with existing equipment without process changes is a huge advantage for manufacturers. Hope Indian companies are watching and learning from this innovation.

Arjun K

While this Korean innovation is impressive, I'm concerned about our dependency on foreign technology. India's semiconductor mission needs to prioritize material science R&D. We can't just focus on chip design and manufacturing - materials are equally important! 🚀

Sarah B

The environmental compliance aspect is noteworthy. With stricter regulations coming globally, having PFAS-free and solvent-free materials will be crucial. Indian companies should take note of this trend and invest in green semiconductor technologies.

Vikram M

Breaking Japanese dominance in this market is significant. Shows how competitive the semiconductor materials space has become. Indian startups in deep tech should look at such niche areas where we can create world-class products. The timing is perfect with our semiconductor policy.

Michael C

The low shrinkage and absorption rates mentioned are critical for high-yield manufacturing. These material properties directly impact production costs and reliability. Good to see continuous innovation in semiconductor packaging materials - it's what enables faster, more powerful chips for AI applications.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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