- ▶ Investment of KRW 4.27 trillion to expand high-performance semiconductor substrate (FCBGA) production at the Sejong business site in Korea
- - Investment period from September 2026 to May 2028, with mass production starting in September 2028… Largest single-product investment to date
- ▶ Securing business stability through global customer funding support and mid- to long-term volume commitments
- - Global customer funding support resolves risks of new facility investment (CAPEX)
- - Securing mid- to long-term volumes from customers ensures utilization rates… Eases operating cost (OPEX) burden
- ▶ AI infrastructure investment expected to continue over the next 2–3 years… Substrate demand to grow with AI market expansion
- - Acceleration of large-area, high-layer-count FCBGA… Ongoing mid- to long-term demand expected from the technological advancement of semiconductor substrates
- ▶ President Chang Duckhyun: "Strengthening FCBGA business competitiveness with differentiated substrate technology"
Samsung Electro-Mechanics is making a total investment of approximately KRW 6.78 trillion at its Sejong business site and Vietnam subsidiary to respond to the growing demand in the FCBGA (Flip Chip-Ball Grid Array) market for AI servers. By site, KRW 4.27 trillion will be invested to expand FCBGA production capacity at the Sejong business site, and approximately KRW 2.51 trillion will be invested in facilities to expand the FCBGA plant at the Vietnam subsidiary.
In particular, the investment in the Sejong business site is the largest ever for a single product, with the investment period running from September 2026 to May 2028. The Vietnam subsidiary aims to complete construction and begin operations by June 2030. Through this investment, Samsung Electro-Mechanics will significantly expand its FCBGA production capacity both in Korea and overseas.
Rapid Growth in Demand for High-Performance FCBGA Driven by AI Market Expansion
FCBGA is a highly integrated semiconductor substrate that connects high-performance semiconductors such as AI accelerators, GPUs, and CPUs to the mainboard, supplying electrical signals and power. It is a key component that determines the performance and stability of AI semiconductors. Recently, as the AI server and high-performance computing (HPC) markets have grown rapidly, demand for FCBGA has surged. AI semiconductors are evolving to integrate high-performance chips for high-speed computation and large-scale data processing, and as a result, FCBGA is also advancing toward large-area, high-layer-count, and highly integrated structures.
Establishing FCBGA Production System to Meet Global Big Tech Customer Demand
With this investment, Samsung Electro-Mechanics plans to actively respond to the growing demand for high-value-added semiconductor substrates in high-growth markets such as AI servers, HPC, and automotive electronics. In particular, this investment is being pursued based on mid- to long-term cooperation with global big tech and semiconductor customers. As the investment includes customer funding support and mid- to long-term volume guarantees, the company expects to strengthen the competitiveness of its FCBGA business based on a stable demand foundation.
Simulation of new plant construction at the Sejong business site (Generated by Gemini)
The roles of the two sites are also clear. First, the Sejong business site, Korea's production base for semiconductor substrates, will serve as a key hub for mass production of high-value-added, highly demanding products, proactively responding to the increasing demand for AI server substrates.
In addition, the Vietnam subsidiary, a major overseas production base with accumulated global manufacturing competitiveness, will be operated as a strategic hub to respond to global volume demand and enhance production efficiency through a stable supply system. With this FCBGA expansion, Samsung Electro-Mechanics will respond to global customers' mid- to long-term volume expansion needs and further enhance production efficiency and supply stability.
President Chang Duckhyun stated, "As the AI and high-performance computing markets grow rapidly, high-value-added semiconductor substrates are becoming increasingly important as key components that determine semiconductor performance and supply chain stability." He added, "Based on differentiated substrate technology and stable supply capabilities, Samsung Electro-Mechanics will be able to strengthen the competitiveness of its FCBGA business in high-growth markets such as AI servers and automotive electronics."