– Signed a flip chip patent right contract with a large Chinese LED chip manufacturer, securing royalty revenue
YOUNGIN-SI, South Korea, Dec. 1, 2020 /PRNewswire/ — Semiconlight (KRX: 214310) announced on the 1st that it has signed a license agreement for flip chip technology with HC Semitek, a Chinese LED chip manufacturer. In the future, Semiconlight will receive technology royalties related to LED flip chip IP and design among HC Semitek ‘s specific sales.
Semiconlight announced that it received a request for a license agreement for a flip chip patent from HC Semitek in October and reviewed it in earnest, and it will generate the first royalty revenue through this agreement within this year.
HC Semitek, the second-largest chip maker in China, established a Chinese joint venture ‘Semiconlight China’ with Semiconlight in 2016. In 2019, it was selected as a government project of the Korea-China joint international technology development project, and will carry out ‘development of core technology for semiconductor micro LEDs for next-generation displays and research on industrialization’ until 2022.
Semiconlight’s silver-free flip chip is a new type of flip chip, not the existing horizontal chip, and is manufactured with a technology that flips the LED chip and directly fuses it onto the substrate without separate wire bonding. As it can be easily applied to ultra-small LEDs, it is being evaluated as a key technology in emerging mini and micro LED displays. About 250 global registered patents related to Semiconlight’s flip chip LED and package applied to this contract are known.
An official from Semiconlight said, "This contract is meaningful in that it is the first technology royalty contract, and it is expected to help in the patent claim strategy related to flip-chip LED for China in the future. Therefore, we plan to actively respond to global patents."
Meanwhile, HC Semitek is planning to supply micro LEDs for new micro LED signage products for LG Electronics, and it is known that some Chinese companies are also producing mini and micro LEDs. Accordingly, it is expected that the value of patents for flip chips LED, which is a major technology for manufacturing LED chips that are gradually miniaturized, will be more recognized in the market.