Samsung invests €224 million to expand its Busan plant

The plans follows after the company decided to invest about KRW 1.3 trillion (EUR 170 million) in package substrate production facilities in its Vietnamese manufacturing subsidiary. This additional investment brings the amount invested in the package substrate facility expansion to KRW 1.6 trillion (EUR 1.2 billion), a press release reads.

With this investment, Samsung Electro-Mechanics says that it plans to actively respond to the increasing demand for package substrates and also lay the groundwork for gaining an edge in the fast-growing package substrate market.

The industry is in desperate need of substrate technology that can meet the increasing performance of semiconductors for servers and PCs due to the surge in demand for digital technology. In particular, package substrates needed for high-performance computing such as big data and AI require the most complex techniques among substrate products, such as implementing microcircuits, large-area and multi-layered products, as Samsung points out.

“With the advancement of semiconductors and the expansion of AI, cloud, and metaverse, it is becoming crucial for semiconductor manufacturers to secure package substrate partners with technical capabilities," says Chang Duckhyun, CEO of Samsung Electro-Mechanics in the press release. “We will enhance our competitiveness by focusing on the development of technologies that can provide new experiences to customers."

The high-end package substrate market is forecast to grow at an annual rate of 20% in the mid-to-long-term as the demand for various applications requiring high-speed signal processing increases. Samsung Electro-Mechanics seeks to strengthen customer responsiveness using its Busan plant and Vietnamese manufacturing subsidiary as a base for package substrate production.