Samsung Electro-Mechanics (SEMCO) is reportedly developing fan-out panel-level packaging (FOPLP) technology for the production of application processors (AP) for use in wearable devices since 2018.

Digitimes.com reports that SEMCO's FOPLP technology is already involved in mass production for power management chips (PWM IC), and that the firm is looking to develop a new-generation FOPLP process that will be first adopted in the manufacture of APs for use in Samsung's 2019 series of Galaxy Watch.

However, the company is said to still struggling to improve its FOPLP process production yield rate to the level that is able to reach an ideal cost structure for the business.

Earlier in 2018, SEMCO disclosed the company has moved its PLP technology to mass production. SEMCO started its PLP business in 2015 and a year later, the company invested KRW263.2 billion (US$231 million) in the establishment of its PLP manufacturing lines in Cheonan. Mass production has kicked off soon after the samples delivered in March 2018.

SEMCO added its PLP has been adopted for wearable devices as the technology reduce size and thickness compared to existing technologies by packaging the AP and PWM IC in one package. The company also expressed optimism about the PLP market growth in the era of 5G mobile communications, AI and autonomous vehicles.