Samsung Electro-Mechanics announced on the 19th that it has signed a long-term supply agreement (LTA) worth KRW 360.5 billion for package substrates for memory semiconductors with a major global company. The contract period is one year, from January 1 to December 31, 2027.

A package substrate is a component that connects a semiconductor chip to the main board and transmits electrical signals. Substrates for high-performance semiconductors must support large-capacity data processing and high-speed signal transmission, requiring technologies that enable high integration and fine circuitry.

As generative AI becomes more widespread and demand for high-performance computing (HPC) surges, demand is also rapidly increasing for next-generation memory such as high-bandwidth memory (HBM) and high-performance server DRAM modules. As memory becomes faster and more highly integrated, package substrates that connect it to the mainboard also require advanced process technologies such as high layer counts, fine circuitry, and ultra-thin designs.

With this contract, the number of long-term supply agreements disclosed by Samsung Electro-Mechanics since May this year (based on 2.5% or more of sales) has increased to seven, with an accumulated value of approximately KRW 4.3 trillion. On the 6th, Samsung Electro-Mechanics disclosed a KRW 290 billion contract for AI server MLCCs. In addition, as contracts disclosed to date have covered component products such as silicon capacitors, AI server MLCCs, and inductors, this latest agreement is effectively the first long-term supply contract disclosed in the package solutions division.

Samsung Electro-Mechanics is targeting AI-related demand across its business portfolio. During its second-quarter conference call on July 30, the company stated that it would expand supply of FC-BGA, a high value-added package substrate, focusing on high-layer-count and large-area products. It is aiming to begin mass production of glass substrates in 2028.

A Samsung Electro-Mechanics official said, “With the growth of the AI and high-performance computing markets, the importance of high-performance package substrates is increasing further,” adding, “The company plans to continuously enhance the competitiveness of its package substrate business by strengthening supply cooperation with customers and establishing a stable supply system.”

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