Samsung Electro-Mechanics will invest 4.27 trillion won to significantly increase its production capacity for high-performance semiconductor circuit boards used in artificial intelligence (AI) servers. This investment marks the largest single product investment in the company's history, as it embarks on expanding its AI circuit board production with support from global clients and secured long-term supply.
On September 28, Samsung Electro-Mechanics announced its plan to invest 4.27 trillion won in expanding production facilities at its Sejong plant to meet the growing demand for flip-chip ball grid array (FCBGA) circuit boards for AI servers. The investment period will run from this month until May 2028, with mass production of the new line expected to begin in September 2028.
FCBGA serves as the circuit board that connects high-performance semiconductors, such as AI accelerators, graphics processing units (GPUs), and central processing units (CPUs), to the mainboard. As AI semiconductors evolve to integrate multiple high-performance chips, the trend is toward larger and more layered circuit boards.
A key feature of this investment is that Samsung Electro-Mechanics has already secured demand from its clients. Major global tech and semiconductor companies are supporting part of the capital investment and guaranteeing long-term supply. This arrangement allows Samsung Electro-Mechanics to reduce the initial investment burden while ensuring stable operational rates once the new line is operational. The names of the clients have not been disclosed.
Since starting mass production of server FCBGA in South Korea in 2022, Samsung Electro-Mechanics has invested approximately 1.9 trillion won in its production bases in Busan and Vietnam. The investment in Sejong alone exceeds the combined investment in Busan and Vietnam, highlighting a significant focus on AI server circuit boards.
The Sejong plant is being developed as a core hub for high-value, high-complexity FCBGA production. Samsung Electro-Mechanics plans to enhance production efficiency and supply stability to meet the increasing demand for large-area, multi-layer circuit boards in AI servers, high-performance computing (HPC), and automotive markets.
Components for AI applications have already become a growth driver for Samsung Electro-Mechanics. The company is experiencing improved performance this year due to increased supply of multi-layer ceramic capacitors (MLCC) for AI servers and networks, as well as high-value FCBGA for major global tech firms.
Jang Deok-hyun, CEO of Samsung Electro-Mechanics, stated, "As the AI and high-performance computing markets grow rapidly, high-value semiconductor circuit boards are becoming critical components that influence semiconductor performance and supply chain stability. We will strengthen our competitiveness in the FCBGA business in high-growth markets such as AI, servers, and automotive, based on our differentiated circuit board technology and stable supply capabilities."
* This article has been translated by AI.
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