Samsung Electro-Mechanics Invests 6.78 Trillion KRW to Expand AI Substrate Production
Samsung Electro-Mechanics announced a 6.78 trillion KRW investment split between South Korea and Vietnam to boost production capacity of FCBGA semiconductor substrates for AI servers. The plan allocates 4.27 trillion KRW to its Sejong production base in South Korea and 2.51 trillion KRW to its subsidiary in Vietnam. With the rapid rise of AI servers and high-performance computing, advanced packaging components like FCBGA substrates have become critical bottlenecks in the hardware supply chain. This investment solidifies Samsung Electro-Mechanics' capacity to supply top-tier global tech companies with high-value semiconductor substrates. The Sejong investment spans from September 2026 to May 2028 and marks the company's largest single-product investment to date for high-value substrates. The Vietnam facility is targeted for completion by June 2030 and includes financial funding support as well as long-term order commitments from key customers.
## BACKGROUND
Flip Chip Ball Grid Array (FCBGA) is an advanced semiconductor packaging substrate technology used to connect high-density chips such as CPUs, GPUs, and AI accelerators to main circuit boards. Substrates serve as an intermediate layer that transmits high-speed signals and power, making them essential for modern high-performance computing hardware.