Samsung Electro-Mechanics signs KRW 360.5bn memory substrate supply deal
Samsung Electro-Mechanics will supply package substrates for memory semiconductors to an unnamed global customer throughout 2027, under a long-term supply agreement worth KRW 360.5 billion (approximately USD 271 million).
The agreement covers the period from January 1 to December 31, 2027. It is the first major order of this kind for the company’s Package Solution Unit, according to a press release from Samsung Electro-Mechanics. Its Component Solution Unit has signed similar agreements since May for silicon capacitors, MLCCs for AI servers and high-performance inductors.
With this order, Samsung Electro-Mechanics has signed seven long-term supply agreements since May 2026 that were large enough to require public disclosure, meaning each is worth at least 2.5% of the company’s sales. Together they total KRW 4.3 trillion (USD 3.2 billion).
The demand comes from the same source as most of the memory market’s recent growth. Generative AI and high-performance computing have increased demand for high-bandwidth memory (HBM) and high-performance server DRAM modules. As memory chips become faster and more densely integrated, the substrates connecting them to the main board need more layers, finer circuits and thinner designs. Samsung Electro-Mechanics points to large-area fine-circuit implementation and warpage control as its main strengths in the field.
The company has framed the contracts as a deliberate move away from cyclical business. It plans to expand long-term agreements with major customers to reduce its exposure to volatile business cycles and move towards what it describes as a stable, high-profit model. For the package substrate business specifically, Samsung Electro-Mechanics says it will build closer supply cooperation with customers and a stable supply system as AI and HPC demand grows.
