Samsung Electro-Mechanics announced on the 28th that it will invest KRW 4.27 trillion to expand its Sejong plant in order to increase production capacity of FCBGA (Flip Chip-Ball Grid Array), a semiconductor substrate for artificial intelligence (AI) servers.

This investment is the largest ever for a single product. The investment period runs from this month through May 2028, and the company plans to start mass production by operating the new production line from September of the same year.

FCBGA is a substrate that connects high-performance semiconductors such as AI accelerators, graphics processing units (GPUs), and central processing units (CPUs) with the mainboard to supply electrical signals and power. Demand has grown significantly as the AI server and high-performance computing (HPC) markets have recently expanded.

AI semiconductors are evolving toward integrating high-performance chips to enable high-speed computation and large-scale data processing, and accordingly, FCBGA is also becoming more advanced with large-area, high-layer-count, and high-integration structures.

This investment is being pursued based on medium- to long-term cooperation with global big tech customers. The company explained that the customers’ support for investment funds and guarantees of medium- to long-term volumes are included. However, specific contractual terms such as customer names and the size of support have not been disclosed.

Samsung Electro-Mechanics plans to utilize the Sejong plant as a core base for responding to mass production of high-value-added, high-difficulty products, and to proactively respond to growing demand for AI and server substrates.

Jang Deok-hyun, President of Samsung Electro-Mechanics, said, “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,” adding, “Based on Samsung Electro-Mechanics’ differentiated substrate technology and stable supply capabilities, we will be able to strengthen the competitiveness of our FCBGA business in high-growth markets such as AI, servers, and automotive electronics.”

Meanwhile, in July, Samsung Electro-Mechanics announced that it would invest KRW 8 trillion across 40 product types by 2040 to enhance competitiveness in the high-performance package substrate business.

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