Samsung Electro-Mechanics to invest $5 billion to meet FCBGA demand
About USD 3.1 billion will be invested to expand FCBGA (Flip Chip-Ball Grid Array) production capacity at the Sejong site in South Korea and USD 1.9 billion will be invested in facilities to expand the FCBGA plant at the Vietnam subsidiary.
Samsung Electro-Mechanics is making a total investment of approximately KRW 6.78 trillion (about USD 5 billion) at its Sejong business site and Vietnam subsidiary to respond to the growing demand in the FCBGA (Flip Chip-Ball Grid Array) market for AI servers.
By site, KRW 4.27 trillion (about USD 3.1 billion) will be invested to expand FCBGA production capacity at the Sejong business site in South Korea, and approximately KRW 2.51 trillion (about USD 1.9 billion) will be invested in facilities to expand the FCBGA plant at the Vietnam subsidiary, according to a press release.
The Vietnam subsidiary aims to complete construction and begin operations by June 2030. Through this investment, Samsung Electro-Mechanics will significantly expand its FCBGA production capacity both in Korea and overseas, the company said.
FCBGA is a highly integrated semiconductor substrate that connects high-performance semiconductors such as AI accelerators, GPUs, and CPUs to the mainboard, supplying electrical signals and power. It is a key component that determines the performance and stability of AI semiconductors.
With this investment, Samsung Electro-Mechanics plans to actively respond to the growing demand for high-value-added semiconductor substrates in high-growth markets such as AI servers, HPC, and automotive electronics. In particular, this investment is being pursued based on mid- to long-term cooperation with global big tech and semiconductor customers.
“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,” Samsung Electro-Mechanics President and CEO Chang Duckhyun said. “Based on differentiated substrate technology and stable supply capabilities, Samsung Electro-Mechanics will be able to strengthen the competitiveness of its FCBGA business in high-growth markets such as AI servers and automotive electronics.”
