Samsung Electro-Mechanics is to invest approximately Won2.51tn ($1.88bn) in its Vietnam subsidiary to expand production of flip-chip ball grid array (FCBGA) semiconductor substrates.
The investment is part of a broader expansion programme covering the company’s Sejong site in South Korea and its Vietnam operation.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Of the total Won6.78tn commitment, Won4.27tn is earmarked for additional FCBGA capacity at Sejong.
Samsung Electro-Mechanics intends to use the Vietnam operation as a high-volume manufacturing base for international customers, while improving production efficiency and supply continuity.
The company expects customer volume commitments to support the expansion as demand for advanced semiconductor substrates increases.
FCBGA substrates provide the connection between advanced processors – including AI accelerators, GPUs, and CPUs – and the mainboard. They carry the electrical signals and power required by these high-performance components.
Construction at the Vietnam facility is scheduled to be completed by June 2030, when operations are expected to begin.
The Sejong project, which Samsung Electro-Mechanics describes as its largest investment in a single product, is due to run from September 2026 to May 2028.
Mass production is scheduled to start at the site in September 2028.
Sejong will focus on complex, high-value-added FCBGA products for applications such as AI servers. The facility is expected to produce substrates with larger surface areas and more layers to support increasingly demanding semiconductor designs.
Samsung Electro-Mechanics stated that global customer financing and mid- to long-term volume commitments support the overall investment programme.
These provisions are expected to reduce risks related to new facility investment, support factory utilisation, and moderate operating-cost pressure as the expanded network becomes operational.
Samsung Electro-Mechanics president Chang Duckhyun said: “As the AI and high-performance computing markets grow rapidly, high-value-added semiconductor substrates are becoming increasingly important as key components that determine semiconductor performance and supply chain stability.
“Based on differentiated substrate technology and stable supply capabilities, Samsung Electro-Mechanics will be able to strengthen the competitiveness of its FCBGA business in high-growth markets such as AI servers and automotive electronics.”
