Samsung Electro-Mechanics announced on October 19 that it has signed a long-term supply contract (LTA) worth 360.5 billion won with a global large enterprise for memory semiconductor package substrates.
Under this agreement, Samsung Electro-Mechanics will provide high-performance package substrates for memory semiconductors to a major global customer from January 1, 2027, to December 31, 2027.
Package substrates are essential components that connect semiconductor chips to the main circuit board, facilitating the transmission of electrical signals and ensuring stable operation of semiconductors. High-performance package substrates, in particular, must support large-volume data processing and high-speed signal transmission, requiring advanced technology for high integration and fine circuitry.
Recently, the global semiconductor market has seen a surge in demand for next-generation memory semiconductors, such as high-bandwidth memory (HBM) and DRAM modules for high-performance computing (HPC), driven by the proliferation of generative AI and increased demand for high-performance computing.
Samsung Electro-Mechanics is recognized for its unique technology and production stability in the field of package substrates, including large-area fine circuit implementation and warpage control technology.
With this contract, Samsung Electro-Mechanics has expanded its long-term supply agreements across its core business areas. Since May of this year, the company has secured large long-term supply contracts in its component business, including silicon capacitors, MLCCs for AI servers, and inductors, and has now recorded significant orders in its package solution business.
As a result, the number of long-term supply contracts signed by Samsung Electro-Mechanics since May 2026 has increased to seven, with a cumulative contract amount reaching 4.3 trillion won.
Samsung Electro-Mechanics aims to strengthen cooperation with key clients and expand long-term supply contracts to overcome volatility due to economic cycles and improve its stable high-profit structure.
A company official stated, "The importance of high-performance package substrates is growing with the expansion of the AI and high-performance computing markets. We plan to enhance our competitiveness in the package substrate business by strengthening supply cooperation with our customers and establishing a stable supply system."
* This article has been translated by AI.
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