Samsung Electro-Mechanics commits 6.78 trillion won to expand FCBGA capacity

  • Samsung Electro-Mechanics approved 6.78 trillion won to expand FCBGA capacity in South Korea and Vietnam.
  • The plan allocates 4.27 trillion won to Sejong and 2.51 trillion won to Vietnam.
  • Sejong mass production is scheduled for September 2028 after construction ends May 31.

Samsung Electro-Mechanics will invest 6.78 trillion won, approximately $4.98 billion, to expand Flip-Chip Ball Grid Array (FCBGA) package-substrate production at its Sejong plant in South Korea and Vietnamese subsidiary. The plan allocates 4.27 trillion won to Sejong and 2.51 trillion won to Vietnam, reflecting rising demand for substrates used in AI accelerators and server CPUs. The Sejong project will run through May 31, 2028, with mass production scheduled for September 2028, while the Vietnamese facility is due to be completed by the end of April 2028. The Sejong investment is the company’s largest single-product capital expenditure and equals 43.6% of its 9.7973 trillion won in consolidated shareholders’ equity recorded last year. The expansion is being pursued with global big-tech customers through advance payments and three- to five-year volume commitments. Brokerages’ third-quarter operating-profit estimates averaged 605.1 billion won, or 2.3 times the year-earlier figure, while Hana Securities separately forecast 661.5 billion won.

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