National Growth Fund Backs Chip Packaging to Close Gap With Taiwan

Hana Micron's investment in advanced system chip testing addresses a reported shift in the global advanced packaging market. Kim Hwi-jong, head of Hana Micron's finance group, stated that demand from AI data centers and high-performance computing is driving real growth, transforming packaging into a high-value industry that influences finished chip performance. This suggests a strategic move by the company to capture value in a critical segment of semiconductor manufacturing.

The company reportedly encountered difficulties raising money through conventional means. Hana Micron executives indicated that global financial market volatility, less favorable bank loan terms for smaller companies, and the market's preference for shorter-term corporate bonds made traditional financing unsuitable for a long-term investment. Park Sang-mook, Hana Micron's CFO, noted that corporate bonds typically favor two-year paper, which was not appropriate for their decade-plus investment horizon.

The National Growth Fund's loan, with its low interest rate, three-year grace period, and seven-year repayment schedule, directly addressed the need for stable, patient capital. The fund's criteria reportedly prioritize securing competitiveness in core national industries rather than focusing solely on risk or returns. This approach, also supported by the Financial Services Commission, suggests a coordinated effort to develop domestic capabilities in advanced chip packaging, an area where Korea's back-end ecosystem is reportedly weaker compared to competitors like Taiwan.