Samsung Electro-Mechanics Invests 6.78 Trillion Won for AI Server Substrate Capacity

Samsung Electro-Mechanics (SEM) has announced a substantial investment of 6.78 trillion won (approximately $5.1 billion USD) aimed at increasing production capacity for FCBGA (Flip-Chip Ball Grid Array) semiconductor substrates, crucial components for AI servers. This move is intended to address the escalating demand in the high-performance computing sector.

The investment will be deployed across two key locations: South Korea and Vietnam. A significant portion, 4.27 trillion won (approximately $3.2 billion USD), will be allocated to SEM's production base in Sejong, South Korea. This represents the largest single product investment in the company's history and is designated for the mass production of high-value, complex products. Construction for this expansion is slated to commence in September 2026 and conclude by May 2028.

Concurrently, 2.51 trillion won (approximately $1.9 billion USD) will be invested in SEM's Vietnamese subsidiary. This facility is expected to be completed and operational by June 2030. The Vietnamese operation will serve as a strategic hub for managing global orders and enhancing production efficiency.

According to SEM, this expansion is underpinned by mid-to-long-term partnerships with major global technology and semiconductor clients. These agreements include financial backing and secured long-term orders from customers. The company aims to solidify its market position by catering to rapidly growing segments, including AI servers, High-Performance Computing (HPC), and automotive electronics.