Toppan to build package substrate plant in Singapore
Japan's Toppan Holdings is preparing to start construction of a new facility in Singapore with the completion date set for the end of 2026.
The printing and materials group has not disclose the size of its investment, but the figure is estimated at 50 billion yen (USD 338 million). Toppan currently produces package substrates only at its plant in Japan's Niigata prefecture. This new proposed site will diversify its production base and also give it access to the many back-end processing contractors that handle semiconductor assembly and testing in Malaysia and Taiwan.
Toppan is expanding to meet the surge in demand for package substrates – the components on which integrated circuit chips are connected to printed circuit boards. Over time, producers have miniaturised circuit line widths to improve chip performance, but this process is nearing its limit. Toppan offers larger and multilayered package substrates, which can be used in semiconductors for communications, AI and other areas. Analysts believe the chip substrate market could reach USD 29 billion by 2028.
Toppan received support for this new project from Singapore's government and also from its biggest customer Broadcom. It wants to increase its substrate production capacity 150% by fiscal 2027.
