Samsung Electro-Mechanics Signs KRW 360.5 Billion Semiconductor Package Substrate Supply Agreement

Supply to a major global customer for one year starting next year
Seven long-term supply agreements signed this year... cumulative value of KRW 4.3 trillion

Samsung Electro-Mechanics has signed a long-term supply agreement worth KRW 360.5 billion with a major global customer for package substrates used in memory semiconductors. The agreement is intended to meet rising demand for high-performance semiconductor components as the artificial intelligence (AI) and high-performance computing (HPC) markets grow.

A view of Samsung Electro-Mechanics' Suwon campus. Samsung Electro-Mechanics

Samsung Electro-Mechanics said on Oct. 19 that it had signed a long-term supply agreement (LTA) with a major global company for package substrates used in memory semiconductors. The agreement runs for one year, from Jan. 1 to Dec. 31, 2027.

Package substrates are key components that connect semiconductor chips to main circuit boards and transmit electrical signals. In recent years, the memory semiconductor market for next-generation products, including high-bandwidth memory (HBM) and DRAM for high-performance servers, has grown amid the spread of generative AI and rising demand for HPC. This has also increased the importance of high-performance package substrates.

As memory semiconductors become faster and more densely integrated, package substrates are also required to incorporate advanced technologies, including more layers, finer circuitry and ultra-thin designs. Samsung Electro-Mechanics is serving this market with technologies such as large-area fine-circuit implementation and substrate warpage control.

With this agreement, Samsung Electro-Mechanics has expanded its long-term supply agreements to its package solutions business, following its components business, which includes multilayer ceramic capacitors (MLCCs) and silicon capacitors.

Since May this year, the company has signed a total of seven long-term supply agreements disclosed through regulatory filings, with a cumulative contract value of KRW 4.3 trillion. The company plans to expand long-term supply agreements to reduce earnings volatility caused by fluctuations in the semiconductor market and build a stable revenue structure.

A Samsung Electro-Mechanics official said, "The growth of the AI and high-performance computing markets is making high-performance package substrates increasingly important. We plan to continue enhancing the competitiveness of our package substrate business by strengthening supply cooperation with customers and establishing a stable supply system."

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