Samsung Electro-Mechanics to invest $5 billion in AI chip substrates
Samsung Electro-Mechanics will invest 6.78 trillion won in AI chip substrates. The sum is worth about $5 billion.
The money goes to flip-chip ball grid array production. These substrates connect AI chips to circuit boards.
About 4.27 trillion won will expand the Sejong plant in South Korea. Another 2.51 trillion won goes to its Vietnam unit.
It is the largest single-product investment in the company’s history. Mass production is set to begin in September 2028.
The move targets the AI server boom. Demand for high-end substrates has outstripped supply.
FC-BGA substrates are a key bottleneck in AI hardware. They carry power and signals between chips and boards. Demand has surged with the AI server boom. Samsung Electro-Mechanics is an affiliate of Samsung Electronics. The Sejong expansion is its largest single-product bet. New lines are due for mass production in September 2028. The Vietnam plant has been expanding since 2021. Global clients have given long-term supply commitments. The board approved the plan on September 28.
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