Samsung Electro-Mechanics to invest 6.7 trillion won in AI substrate capacity

  • Samsung Electro-Mechanics will expand FC-BGA production at Sejong and package-substrate facilities in Vietnam.
  • The company will invest 6.7 trillion Korean won, including 4.27 trillion won at Sejong.
  • New Sejong production lines are scheduled to begin mass production in September 2028.

Samsung Electro-Mechanics will invest 6.7 trillion Korean won across domestic and overseas facilities to expand production of high-value semiconductor substrates for artificial intelligence. The company will spend 4.27 trillion won expanding its Sejong complex, its largest-ever investment in a single product, with new FC-BGA (flip-chip package substrate) lines scheduled to begin mass production in September 2028. FC-BGA substrates connect high-performance chips such as AI accelerators to motherboards, transmitting electrical signals and power. By attaching chips directly to the substrate through tiny ball-shaped bumps, the technology shortens signal paths compared with wire bonding, supporting faster data transmission and improved power efficiency. Samsung Electro-Mechanics’ Vietnam production subsidiary will invest a further 2.51 trillion won in local package-substrate facilities. President Chang Duck-hyun has said demand for server and data-center FC-BGA exceeds current production capacity by more than 50%. The company said its Sejong plan is based on mid- to long-term cooperation with global big tech customers, including customer investment support and mid- to long-term volume guarantees, giving the business a stable demand foundation. Chang said differentiated substrate technology and stable supply capabilities would strengthen the company’s FC-BGA competitiveness in AI, servers and automotive electronics.

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Samsung Electro-Mechanics to invest 6.7 trillion won in AI substrate capacity - CoinPost Terminal