JX Metals to Double Rhodium Plating Capacity as AI Chip Testing Demand Soars

JX Metals is significantly expanding its production of rhodium plating solution, a key material for semiconductor testing.

This move is driven by the explosive growth in AI accelerators and HBM memory, which require more intensive testing and cause faster wear on test components.

Strong earnings from test equipment companies and a stable rhodium market confirm the high demand and support the timing of this investment.

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JX Metals has announced a major investment to more than double its production capacity for a highly specialized material used in semiconductor testing by fiscal year 2028.

This material is a rhodium plating solution, which is used to create an ultra-durable coating on the tiny pins of 'probe cards'. Think of probe cards as sophisticated testing tools with thousands of microscopic needles that touch down on a silicon wafer to check if each individual chip works correctly. The decision to expand is a direct response to the booming AI industry.

Here’s the causal chain. First, the proliferation of AI accelerators and High-Bandwidth Memory (HBM) has dramatically increased the complexity of chips. For example, the upcoming HBM4 memory standard doubles the number of input/output (I/O) pins compared to its predecessor, from 1,024 to 2,048.

Second, more pins and more complex functions mean more testing is needed. These probe card pins have to touch down on the wafer millions of times. This intense process causes significant wear and tear. A worn-out pin can lead to inaccurate tests, reducing the yield of good chips.

This is where rhodium comes in. It's an extremely hard and chemically stable precious metal. A rhodium coating makes the probe pins last much longer and maintains a reliable electrical connection, which is crucial for accurate testing. As demand for AI chips soars, so does the demand for these durable probe pins and, consequently, the rhodium solution used to coat them.

This trend is confirmed by market data. Leading test equipment companies like Teradyne and probe card makers like FormFactor have reported record revenues, explicitly citing AI and HBM as the primary drivers. Furthermore, reports from materials experts like Johnson Matthey suggest the rhodium market is currently in a slight surplus, making it a good time for JX Metals to expand without facing soaring material costs.

[Glossary]

Probe Card: A device used in semiconductor manufacturing to test the integrated circuits on a silicon wafer before they are cut and packaged.
High-Bandwidth Memory (HBM): A type of high-performance computer memory used in high-end graphics cards, network devices, and supercomputers, essential for AI applications.
Rhodium: A rare, silvery-white, hard, and corrosion-resistant precious metal belonging to the platinum group.