[Edaily Reporter Kwon Oh Seok ] Global semiconductor materials company MKElectron(033160)announced on the 29th that it is expanding its test materials portfolio amid the trend toward higher integration in artificial intelligence (AI) semiconductors and high-performance memory. Following its existing packaging materials, including bonding wires, the company is broadening its scope to include materials for semiconductor testing, aiming to diversify its supply chain.
MKElectron announced on the same day that it is currently undergoing the approval process for its “Pd Alloy” (palladium alloy for semiconductors) material, which is used in test sockets for a major U.S. global customer that supplies on-device AI chips. Once approval is complete, mass production and supply are scheduled to begin in October, and the company plans to expand its customer base within the high-specification AI semiconductor value chain through this initiative.

◇High Integration of AI Semiconductors… Accompanying Expansion of the Test Material Market
Pd Alloy is the material used for the plungers in the pogo pins mounted on semiconductor test sockets. Test sockets are components that connect semiconductor chips to test equipment to inspect the chips’ performance and electrical characteristics, while pogo pins transmit electrical signals through repeated contact. Consequently, the plunger material must possess a certain level of wear resistance, electrical stability, and low contact resistance.
Driven by the trend toward high performance and high integration—particularly in AI semiconductors—package structures are becoming more complex, leading to an increase in both the number of test items and test duration. As repetitive contact in high-current, high-load environments increases, market attention is focusing on changes in the replacement cycles of test pins—which are consumable components—and the resulting shifts in demand for related materials.
MKElectron’s sales of Pd Alloy have been on the rise since full-scale sales began last year. Sales in the first half of this year increased by 179% compared to last year’s annual sales. Building on its track record of supplying domestic customers, the company has delivered initial shipments to markets in China, Taiwan, and Japan, and is seeking to enter mass production for U.S. customers.
An MKElectron official explained, “Since mass production of Pd Alloy began last year, both the number of customers and supply volumes have been increasing,” adding, “With first-half sales this year already exceeding last year’s levels, we are working to expand our customer base both domestically and internationally and increase supply volumes.”
◇Localization of Materials and Diversification of Overseas Bases from Packaging to Testing
MKElectron has been promoting localization in the semiconductor packaging materials market, which has historically been dominated by Japanese companies. Building on the technology and mass production experience of its flagship product, bonding wire, the company is expanding its application scope to high-value-added products such as Pd Alloy.
Pd Alloy is emerging as a key product that complements the existing bonding wire and solder ball businesses, and the company’s strategy is to simultaneously pursue the localization of test materials—for which there is a high degree of reliance on overseas sources—and supply them to overseas customers.
Regarding overseas operations, the revenue share of the Chinese subsidiary remains steady, driven by China’s expansion of semiconductor production capacity and efforts to establish local supply chains. While leveraging its supply experience in the Chinese market, MKElectron is also considering expanding into regions with diversified production bases, such as Vietnam and India, in the medium to long term.
◇Start of Bonding Wire Supply for SoCAMM2
In the packaging sector as well, the company is supplying bonding wires tailored to changes in the AI semiconductor market. MKElectron began supplying bonding wires for the production of memory packages used in SoCAMM2 starting in the third quarter. Currently, the company is in the small-volume supply phase aligned with the initial production schedule, and supply volumes are expected to fluctuate in the future based on the customer’s SoCAMM2 mass production schedule.
SoCAMM2 is a next-generation memory module for AI servers. The supplied bonding wires are used to electrically connect chips to the substrate within the internal memory package, rather than within the module itself. Consequently, changes in SoCAMM2 production volume directly impact demand for bonding wires.
An MKElectron official stated, “We are currently supplying initial volumes of SoCAMM2-related bonding wires in accordance with our client’s schedule, and we will adjust supply volumes in line with future mass production scales,” adding, “Based on our semiconductor materials technology, we will diversify our high-value-added product portfolio and continue to strengthen our position in the global market.”