Capcon Semiconductor raises $50m

The company previously received funding from the likes of Bank of China International, Hua Capital, and Intel, according to a 36Kr report cited by Hina Group, which advised on the Series B extension. In addition, it recently agreed on a three-year supply deal with Taiwan-listed Advanced Semiconductor Engineering.

Founded in 2014 by Feng Yu, Honggang Wang, and Hongbo Wang, Capcon claims to be registered in the Cayman Islands and have subsidiaries located in Hong Kong and Singapore. Its corporate headquarters is in Singapore, while the marketing department is based in Beijing, according to a company representative. 

The Capcon website references offices in Singapore, Hong Kong, Beijing, Suzhou, and Kaohsiung City. A corporate history states that a dedicated subsidiary was established to serve mainland Chinese customers in 2021 as part of efforts to tap into the domestic self-sufficiency drive in semiconductors.

The company claims to cover a range of advanced packaging technologies, including flip-chip bonding, chip-on-wafer bonding, package-on-package bonding, stack die bonding, panel-level die bonding, and multi-chip die bonding.

Semiconductor packaging involves producing containers that hold the die, a small block of semiconducting material on which an integrated circuit is fabricated. Customers typically require precision, speed, and stability, given the habit of stacking a large number of integrated circuits.

Capcon identifies high-precision pick-and-place as a competitive advantage, holding several global technology patents in this area. It also offers a high degree of product flexibility, which supports process diversity and user customisation. Hongbo Wang told 36Kr that the company can launch a new product every six months, while most competitors work to 1-2-year development cycles.

Capcon has served approximately 30 customers to date, including the 10 largest semiconductor manufacturers in China and seven of the global top 10. The likes of ASE, Siliconware Precision Industries (SPIL), Nepes Corp, and Tongfu Microelectronics are identified as repeat customers.

Revenue is expected to double in 2023, according to a statement. Continued growth will be supported by robust global demand, with Yole Group, a semiconductor-focused research organisation, projecting the worldwide market for advanced semiconductor packaging will be worth USD 42bn by 2025, up from USD 33bn in 2021.

High-precision pick-and-place machines are said to account for 30%-40% of all production line costs.

Changwu Wang, an executive director at Hina, said that Capcon has achieved global leadership in wafer-level packaging on the back of its high-precision, high-speed, and high-stability solutions. The company is now looking to raise a third tranche of Series B funding.

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• Topics
• Greater China
• Technology
• Early-stage
• China
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• Hillhouse Capital Management
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