[E-Daily Reporter kyoungeun kim ] SamsungElectroMechanics(009150)is embarking on a large-scale expansion to increase its production capacity for package substrates. While the disclosed investment amount is approximately 6.78 trillion won, analysts estimate that the actual total investment will exceed 8 trillion won. Since a significant portion of the investment funds will be raised through advance payments from clients, this investment is viewed as one with guaranteed demand and utilization rates.

Kim Un-ho, an analyst at IBK Investment & Securities, commented on the 29th regarding SamsungElectroMechanics’ previous day’s disclosure on new facility investments and the acquisition of tangible assets, stating, “The purpose of this investment is to expand production capacity for flip-chip ball grid array (FC-BGA),” and “Although the investment scale disclosed in the announcement is approximately 6.78 trillion won, since the Vietnamese subsidiary only disclosed equipment costs, the total investment is estimated to exceed 8 trillion won.”
FC-BGA is a substrate used for mounting semiconductors onto printed circuit boards (PCBs). Analyst Kim explained, “FC-BGA is primarily used in central processing units (CPUs), graphics processing units (GPUs), and artificial intelligence (AI) application-specific integrated circuits (ASICs), and its application is expanding to other high-performance semiconductors.”
He particularly highlighted that this investment is structured such that customers bear the costs. Analyst Kim analyzed, “A significant portion of the investment amount is funded by advance payments received from customers,” adding, “Given that a certain operating rate is guaranteed, this is judged to be a contract with strong binding force.”
Revenue is projected to expand gradually. Analyst Kim stated, “Revenue is expected to exceed the investment amount from 2028 to 2030,” adding, “The maximum revenue secured through this investment is projected to exceed 8 trillion won annually.” He estimated that peak revenue would be reached in 2032.
The firm also assessed this as an example confirming the sustainability of AI demand. Analyst Kim remarked, “This is a representative investment case demonstrating that AI investment and demand will persist over the long term,” and predicted, “The increase in new chips signifies growing AI-related demand, which will be accompanied by demand not only for printed circuit boards but also for memory and multilayer ceramic capacitors (MLCCs).”
IBK Investment & Securities maintained its “Buy” rating and target price of 1.75 million won for SamsungElectroMechanics.