Samsung Electro-Mechanics to Invest 6 Trillion KRW in Expanding Domestic and Overseas Substrate Production

4.27 Trillion KRW for Sejong, 2.51 Trillion KRW for Vietnam

Samsung Electro-Mechanics will invest approximately 6 trillion KRW in its domestic and overseas production bases to expand production capacity for high-value-added semiconductor package substrates used in artificial intelligence (AI) servers.

On September 28, Samsung Electro-Mechanics announced through a public disclosure that it would invest 4.27 trillion KRW to expand its package substrate production facilities at its Sejong plant in South Korea.

The investment period runs from the date of the announcement until May 31, 2028, and mass production from the new production line will begin in September of that same year.

The company's manufacturing subsidiary in Vietnam also announced via a "Decision on Acquisition of Tangible Assets" disclosure that it will invest 2.51 trillion KRW in local package substrate equipment.

Through this large-scale investment, Samsung Electro-Mechanics aims to expand its production capacity for flip chip ball grid array (FC-BGA) substrates, a high-value package substrate for AI servers.

FC-BGA is a core component that connects high-performance semiconductors—such as AI accelerators, graphics processing units (GPU), and central processing units (CPU)—to the mainboard. As the AI server market has recently grown, demand is increasing, particularly for large-area and high-layer-count products.

Samsung Electro-Mechanics plans to utilize the Sejong plant as a key base for mass-producing high-value, high-difficulty products, responding to the growing demand in high-growth markets such as AI servers and high-performance computing (HPC).

Dukhyun Jang, CEO of Samsung Electro-Mechanics, said, "By leveraging our differentiated substrate technologies and stable supply capabilities, we will be able to strengthen the competitiveness of our FC-BGA business in high-growth markets such as AI, servers, and automotive electronics."

This content was produced with the assistance of AI translation services.