Hello, this is FJ Composite.
Today, we are excited to share a major milestone for our company.

On Wednesday, April 30, 2024, a grand mass production launch ceremony for our S-DBC product—developed by FJ Composite and transferred through our technology—was held at LX Semicon, a semiconductor company based in South Korea.
Our company president was invited to attend and gave a speech at the event.

Link: Online news article from South Korea
※The English translation of the article is provided at the end of this page.

This moment marks a significant challenge and a leap forward for FJ Composite.
Let us explain step by step why this ceremony matters so much.

🔧 What is S-DBC?

S-DBC, developed and manufactured by FJ Composite, stands for ‘ceramic insulated circuit board.’
In simple terms, it is an electric board that does not break even under high power.

A particularly notable application is in the ‘power devices’ of electric vehicles (EVs).
Power devices are the ‘heart’ of EVs, and our S-DBC is being adopted in these critical components.

Generally, DBC boards refer to composite boards combining copper and ceramic.
While there are many products from other companies in the market, FJ Composite’s S-DBC is uniquely manufactured with proprietary technology, making it an unparalleled product optimized for power devices.

🏢 What Kind of Company is LX Semicon?

LX Semicon is a fabless semiconductor manufacturer headquartered in South Korea,
primarily engaged in the design and development of system ICs for displays.
Originally part of the LG Group as ‘Silicon Works,’ it became independent as ‘LX Group’ in 2021 following a reorganization.

Even now, strong technical and economic ties with LG remain.
It’s akin to a family-run sibling company that has become independent but continues to collaborate closely.

With approximately 1,500 employees,
LX Semicon has recently been focusing on the power device business, essential for EVs.

🤝 The Background of Collaboration Between FJ Composite and LX Semicon

Several years ago, we succeeded in developing an ideal DBC board for power devices.
While we were considering how to promote this technology globally,
LX Semicon, which had just begun its power device business, approached us for a technology transfer.

Typically, such technology transfers start quietly within a section of an existing lab,
but this case was entirely different.
A dedicated S-DBC manufacturing plant was constructed in a prime location in South Korea with an investment of nearly 10 billion yen.

To our knowledge, this facility is one of the world’s top DBC manufacturing plants.

🌍 The Background and Significance of the Technology Transfer

This technology transfer involved numerous challenges, including language barriers, cultural differences, and the conveyance of intricate manufacturing know-how.
Nevertheless, we resonated with LX Semicon’s strong desire to ‘deliver good products to the world’ and decided to move forward together.

Thus, FJ Composite’s technology was officially transferred to South Korea,
and the establishment of the plant began about two years ago.
Now, with the mass production system in place, the launch ceremony was held, and our president was invited to give a speech at the event.

🚗 Future Outlook

S-DBC is expected to become increasingly widespread in EVs worldwide.
As the adoption of electric vehicles accelerates,
we take great pride in contributing our technology to support the ‘heart’ of these vehicles.

For reference, the table below indicates when each country is expected to reach an 80% EV share in new car sales.
Norway has already achieved this milestone, while Japan has yet to announce an official projection.

The English translation：LX Semicon Begins Mass Production of Automotive Heat Dissipation Substrates

※Second from the left: Eiki Tsushima, President and CEO of FJ Composite

LX Semicon has begun mass production of heat dissipation substrates for automotive use, a business it has been nurturing as a future growth engine. The company plans to double its production capacity by next year.

On the 30th, LX Semicon held a mass production launch ceremony at its Siheung campus in Gyeonggi Province. The heat dissipation substrates produced by the company play a crucial role in releasing heat generated by power semiconductors installed in electric and hybrid vehicles. When power semiconductors operate at high output, they generate significant heat, and if this heat is not properly managed, it can drastically reduce the reliability and lifespan of the components. Heat dissipation substrates are used to effectively manage this heat.

LX Semicon designated heat dissipation substrates as a strategic growth industry and, in 2022, completed the construction of a 10,000-square-meter factory at its Siheung campus.
Since then, the company has invested approximately 100 billion KRW (around 75 million USD) over the past five years to prepare for mass production, including internalizing the etching process.
During this time, LX Semicon has been producing prototypes to enhance its quality control capabilities.

LX Semicon Applies Proprietary MDB Technology to Heat Dissipation Substrates, Expands Production Capacity

LX Semicon has applied a differentiated method known as MDB (Metal Diffusion Bonding) to its heat dissipation substrates. MDB is a technology that bonds ceramics and copper using a thin and uniform metal layer. Because the bonded interface is thin and consistent, it provides excellent thermal and mechanical reliability.

Previously used methods included AMD (Active Metal Brazing) and DCB (Direct Copper Bonding). Although MDB offers superior bonding quality and reliability, it has been considered technically challenging and more costly.

After years of investment, LX Semicon has successfully achieved mass production of MDB-based substrates. The company emphasized that MDB can be applied not only to high-performance nitride ceramics such as silicon nitride (Si₃N₄) and aluminum nitride (AlN), but also to more affordable oxide ceramics like aluminum oxide (Al₂O₃).

LX Semicon’s strategy is to rapidly expand production capacity to meet market demand. Its current annual capacity is 250,000 units, with plans to double it to 500,000 units by the end of next year. The company aims to continue scaling production in line with customer needs, while enhancing productivity through further technological advancements.

The heat dissipation substrate market is expected to grow alongside the electric vehicle (EV) market. Although EV demand has recently faced stagnation (the so-called “chasm”), signs of recovery are appearing, particularly in China and Europe. S&P Global Mobility forecasts that global EV sales will grow 30% year-on-year in 2024, reaching 15.1 million units.

Lee Yoon-tae, CEO of LX Semicon, stated, “We will deliver the highest level of customer satisfaction through differentiated manufacturing technology and strict quality control,” and added, “We plan to diversify our heat dissipation substrate portfolio and expand our customer base going forward.”