Samsung Electro-Mechanics Secures Customer Backing for $5 Billion Substrate Expansion
· TexaHub · Semiconductors, Technology Trends
Samsung Electro-Mechanics is investing KRW 6.78 trillion in FCBGA substrate capacity in Korea and Vietnam, with customer funding and volume commitments, according to Digitimes.
The investment
Samsung Electro-Mechanics is investing about KRW 6.78 trillion (about $5 billion) to expand flip-chip ball grid array (FCBGA) substrate capacity, with KRW 4.27 trillion at its Sejong site in South Korea and KRW 2.51 trillion in Vietnam, according to Evertiq's 29 September report [2]. Digitimes reported on 6 October that the expansion has customer backing [1].
The Outpost said the plan rests on medium- to long-term partnerships with global Big Tech customers that provide financial support and demand guarantees, and that Sejong mass production is due from September 2028 [3].
Why substrates matter
FCBGA substrates connect AI accelerators, GPUs and CPUs to mainboards. "High-value-added semiconductor substrates are becoming increasingly important as key components that determine semiconductor performance and supply chain stability," CEO Chang Duckhyun said [2]. The Vietnam plant is expected to be completed by June 2030 [2].
Sources
[1] Samsung secures customer backing for US$5B substrate expansion — Digitimes, 6 Oct 2026
[2] Samsung Electro-Mechanics to invest $5 billion to meet FCBGA demand — Evertiq, 29 Sep 2026
[3] Samsung Electro-Mechanics commits $5 billion to expand FC-BGA substrate production for AI servers — The Outpost, Oct 2026