Samsung Electro-Mechanics to Invest 1 Trillion KRW in Semiconductor Package Substrate Business at Vietnam Subsidiary

Samsung Electro-Mechanics Semiconductor Package Substrate
Photo by Samsung Electro-Mechanics

[Asia Economy Reporter Kim Heung-soon] Samsung Electro-Mechanics announced on the 23rd that it held a board meeting and resolved to invest a total of $850 million (approximately 1.0137 trillion KRW) in the FCBGA production facilities and infrastructure of its Vietnam manufacturing subsidiary.

Samsung Electro-Mechanics stated that the investment amount will be executed in stages until 2023, and through this investment, it plans to focus its capabilities on the semiconductor package substrate business, which is expected to experience long-term high growth.

Semiconductor package substrates are products that connect highly integrated semiconductor chips and main substrates to transmit electrical signals and power. With the high performance of semiconductors in 5G, artificial intelligence (AI), and automotive electronics, the number of substrate layers is increasing, requiring advanced technologies such as fine circuit implementation, fine alignment between layers, and slimming to reduce set thickness.

FCBGA is a highly integrated package substrate that connects semiconductor chips and main substrates using 'flip-chip bumps' and is considered the most difficult product to manufacture among semiconductor package substrates. It is mainly used in CPUs (central processing units) and GPUs (graphics processing units) that require high-performance and high-density circuit connections.

Industry experts expect that with the increasing demand for various applications requiring high-speed signal processing such as servers and networks, FCBGA will grow at an annual rate of over 14% in the mid to long term. Additionally, demand is expected to increase mainly for high multilayer and large-size mobile and PC applications, making the FCBGA supply situation tight until 2026.

Samsung Electro-Mechanics plans to specialize its Vietnam manufacturing subsidiary as an FCBGA production hub, while the Suwon and Busan plants will focus on technology development and high-end product production bases to strengthen customer responsiveness.

Jang Deok-hyun, CEO of Samsung Electro-Mechanics, said, "As the performance of semiconductors improves and 5G, AI, and cloud expand, high-performance semiconductor package substrates are becoming more important, leading to increased demand. Based on differentiated technological capabilities, we will develop semiconductor package substrates to provide valuable experiences to our customers."

This content was produced with the assistance of AI translation services.