Samsung Electro-Mechanics to Expand Key AI Semiconductor Substrate Business... Sejong Set for KRW 4.27 Trillion FCBGA Capacity Increase
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Samsung Electro-Mechanics has decided to invest KRW 4.27 trillion to expand FCBGA production capacity at its Sejong plant.
The investment is aimed at responding to growth in the AI server and HPC markets.
The new production line is scheduled to begin operations and mass production in September 2028, and the investment period runs from September 2026 to May 2028.
Samsung Electro-Mechanics is launching a large-scale expansion of FCBGA, a key substrate for AI semiconductors. The company has decided to invest KRW 4.27 trillion to expand FCBGA production capacity at its Sejong plant. The investment is aimed at responding to growth in the AI server and HPC markets.
According to the industry on the 29th, Samsung Electro-Mechanics decided to expand its production line at the Sejong plant to meet demand for FCBGA for AI servers. The move comes in response to growing FCBGA demand driven by the spread of AI servers.
This investment is the largest ever by Samsung Electro-Mechanics for a single product. The investment period runs from September 2026 to May 2028.
The new production line is scheduled to begin operations in September 2028. Mass production on the new line is also set to start in September 2028.
FCBGA is a highly integrated semiconductor substrate that connects high-performance semiconductors such as AI accelerators, GPU, and CPU to the mainboard. It handles electrical signal transmission and power supply functions. As a core component that supports the computing performance and stability of high-performance semiconductors, demand is rising along with the spread of AI servers.
As the AI server market and HPC market expand, AI semiconductors are evolving toward greater functional integration, driven by the need for high-speed computing and large-scale data processing. Accordingly, semiconductor substrate technology is also advancing, and FCBGA, which supports this, is being required to achieve further improvements in large-area structures, multilayer structures, and highly integrated structures.
Based on these trends, Samsung Electro-Mechanics expects AI infrastructure investment to continue for the next 2 to 3 years. On that premise, the company is pushing ahead with expansion to proactively respond to rising demand for high-performance semiconductor substrates.
The basis for this expansion push is a long-term partnership with a global customer. The customer is supporting Samsung Electro-Mechanics by providing investment funding and guaranteeing long-term volumes.
Samsung Electro-Mechanics said customer support would help ease the CAPEX burden related to new equipment investment and also reduce business risk. It also expects that securing long-term volumes will make it possible to maintain stable utilization of the new production line.
In addition, Samsung Electro-Mechanics expects to reduce OPEX pressure by securing long-term volumes. As a result, the expansion plan, which responds to the trend of greater functional integration in AI semiconductors and rising semiconductor substrate technology levels, is being carried out in a way that lowers cost burdens and risk.
Samsung Electro-Mechanics is pushing ahead with this expansion. The goal is to respond to demand for high-value-added semiconductor substrates in high-growth areas such as AI servers, HPC, and automotive electronics, where demand is on the rise. For this purpose, the company plans to use the Sejong plant as a key domestic production base for mass production of high-value-added and high-difficulty products. The purpose of using the Sejong plant is to respond to global customers' demands for expanded long-term volumes, while also aiming to improve production efficiency and supply stability.
Samsung Electro-Mechanics President Jang Deok-hyun said the AI and HPC markets are growing rapidly, and the importance of high-value-added semiconductor substrates is expanding accordingly. He said these substrates are key components that determine semiconductor performance and supply chain stability, and added that Samsung Electro-Mechanics has differentiated substrate technology and stable supply capabilities. Based on this, he said the company can strengthen the competitiveness of its FCBGA business in high-growth markets such as AI, servers, and automotive electronics.
Source: TECHWORLD · Park Kyu-chan
Original: https://www.epnc.co.kr/news/articleView.html?idxno=407446
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Source: TECHWORLD
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