Samsung Electro-Mechanics Gains Attention Ahead of Apple M2 Processor Launch

by Park Sunmi

Published 21 Apr.2022 14:52(KST)

"Samsung Electro-Mechanics, the Only Domestic Company Supplying Semiconductor Substrates to Apple"

<Supply Relationship Between Chip Companies and Substrate Companies>

[Asia Economy Reporter Park Sun-mi] As Apple is expected to unveil a new product lineup equipped with its independently designed M2 processor within the first half of the year, attention is focused on whether Samsung Electro-Mechanics is the only domestic company supplying semiconductor substrates to Apple.

On the 21st, the electronics and securities industries are weighing the possibility that Samsung Electro-Mechanics, along with Japan's Ibiden and Taiwan's Unimicron, will supply the semiconductor package substrate (FC-BGA) used in the M2 processor. As Samsung Electro-Mechanics and LG Innotek are both expanding investments in next-generation semiconductor substrates, rumors have spread that Apple will source substrates from Korean companies. This has created a sentiment favoring Samsung Electro-Mechanics over the latecomer LG Innotek as the likely supplier.

FC-BGA is a substrate that connects semiconductor chips to the main substrate and is considered a core component of the semiconductor post-process packaging work. It is known to be the most technically challenging among package substrates.

Samsung Electro-Mechanics has stated that it cannot confirm customer-related details. However, the industry views Samsung Electro-Mechanics' semiconductor substrate production technology and sales volume as the only ones in Korea comparable to Japanese and Taiwanese companies. It is believed that Samsung Electro-Mechanics has been partially involved in supplying substrates since Apple's M1 processor and is highly likely to have been selected as a substrate supplier for the M2 as well. Samsung Electro-Mechanics' FC-BGA is already positioned at the top tier, being used in high-performance laptops.

Kwon Sung-ryul, an analyst at DB Financial Investment, said, "Apple is developing at least nine Mac PCs equipped with the M2. It appears that Samsung Electro-Mechanics is participating in the substrate segment for Apple's M2 processor. Samsung Electro-Mechanics already supplies FC-BGA to several CPU and GPU companies and supplied substrates for the previous M1, so great results are expected in the future."