Strengthening panel-level processes and supplementing deposition technology portfolio amid the trend toward larger AI chips

Applied Materials has decided to acquire the NEXX business unit, a semiconductor packaging equipment company. Through this, the company plans to secure advanced large-area packaging process technology and expand its related equipment portfolio.

This agreement was announced on May 7 and is expected to be finalized within a few months following standard procedures. The transaction is structured to proceed without separate regulatory approval.

NEXX is a company that has supplied deposition equipment applied to large-area substrates in the semiconductor packaging process. In particular, it possesses electrochemical deposition (ECD) technology suitable for panel-unit processes, and is classified as a technology group that can complement existing wafer-based manufacturing.

With the recent expansion of demand for AI computing, designs integrating GPUs, high-bandwidth memory (HBM), and I/O chips into a single package are increasing. Consequently, 2.5D and 3D chiplet technologies are becoming widespread, and wider interposers and substrates are required. In the industry, there is a growing trend of gradually expanding the transition from existing 300mm wafer-centered production to panel-unit processes of 500mm or larger.

Applied Materials has been supplying equipment covering various processes, including lithography, PVD, CVD, etching, and inspection. With the addition of panel-level deposition technology, the company has expanded its scope to encompass the entire large-scale package manufacturing process. The company explained that it plans to pursue process optimization, such as fine wiring formation, through this acquisition.

A company official stated that the acquisition of NEXX is expected to bring technological complementarity in the field of panel-based advanced packaging and is also anticipated to influence the expansion of joint development with clients. NEXX also announced that it plans to focus on maintaining product competitiveness and improving quality following the integration, based on its existing technologies.

The industry views this deal as having taken place in conjunction with the competition in AI semiconductor packaging technology. As chip design complexity increases, manufacturing processes are shifting toward larger areas and higher densities, and competition among equipment manufacturers to secure the necessary technology to respond to this trend is expected to continue.

Following the completion of the transaction, the NEXX organization will be incorporated into Applied Materials’ semiconductor product group and will continue to operate based in Billerica, Massachusetts, as before.