[Edaily Reporter Choi Oh-hyun ] SamsungElectroMechanics is investing a total of 6.78 trillion won to expand its domestic and overseas production facilities in response to demand for high-performance semiconductor substrates for artificial intelligence (AI) servers. In particular, the company will invest 4.27 trillion won in its Sejong plant alone. This marks SamsungElectroMechanics’ largest-ever investment for a single product. By securing investment funds from global clients and ensuring medium- to long-term supply volumes, the company has also reduced the financial burden associated with this large-scale expansion.

SamsungElectroMechanics announced on the 28th that its board of directors had decided to invest 4.27 trillion won to expand flip-chip ball grid array (FC-BGA) production capacity at the Sejong plant. This amount represents 43.6% of the company’s consolidated equity of 9.7973 trillion won as of the end of last year. The investment period runs from this month through May 2028, with plans to begin mass production by launching the new production line in September of that year.

The company’s Vietnamese subsidiary will also invest 2.51 trillion won to expand its package substrate production facilities. The scheduled acquisition date is April 30, 2028. The investment amount amounts to 103.4% of the Vietnamese subsidiary’s total assets of 2.4278 trillion won as of the end of last year. Combined, the investments in Sejong and Vietnam total 6.78 trillion won.

This investment is a measure to meet the demand for high-performance substrates driven by growth in the AI server and high-performance computing (HPC) markets. FC-BGA is a high-density semiconductor substrate that connects high-performance semiconductors—such as AI accelerators, graphics processing units (GPUs), and central processing units (CPUs)—to motherboards to transmit electrical signals and power. As AI semiconductors enhance their high-speed computation and large-volume data processing capabilities, FC-BGA is also evolving toward larger-area, multi-layer, and high-density structures.

In particular, this expansion was supported by mid- to long-term partnerships with global big tech and semiconductor clients. These customers provided partial funding for the new facility investment and guaranteed medium- to long-term order volumes. SamsungElectroMechanics is now able to reduce the investment risk associated with this large-scale expansion while securing a certain level of capacity utilization, thereby lowering its operating expenses (OPEX). Given the financial support from customers and the guarantee of medium- to long-term order volumes, SamsungElectroMechanics expects to strengthen the competitiveness of its FC-BGA business based on a stable demand foundation going forward.

SamsungElectroMechanics anticipates that investment in AI infrastructure will continue over the next two to three years, driving growth in the high-performance semiconductor substrate market. The company plans to develop its Sejong plant into a key domestic production hub specializing in high-value-added and high-complexity products, while also expanding production capacity in Vietnam to meet global customer demand.

Jang Deok-hyun, President of SamsungElectroMechanics, stated, “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.” He added, “Based on our differentiated substrate technology and stable supply capabilities, we will strengthen the competitiveness of our FC-BGA business in high-growth markets such as AI, servers, and automotive electronics.”

Meanwhile, this investment is part of the government’s “Three Major Mega-Projects for Korea’s Great Leap Forward.” Last July, at the “Public Briefing on the Vision for the Development of High-Tech Industries in the Chungcheong Region,” Samsung announced an investment plan to foster the Chungcheong region as a hub for cutting-edge materials and components. At that time, SamsungElectroMechanics announced plans to expand production facilities for high-performance package substrates for AI servers at its Sejong plant and to invest approximately 8 trillion won in research and development (R&D) for core technologies and the cultivation of specialized talent.