Samsung Electro-Mechanics Makes Record-Breaking KRW 4.27 Trillion Investment in Sejong Plant to Expand Capacity for Artificial Intelligence (AI) Server Substrates

[Financial News] Samsung Electro-Mechanics will invest more than KRW 4 trillion in its Sejong Plant to meet demand for high-performance semiconductor substrates used in artificial intelligence (AI) servers. This is the company's largest-ever investment in a single product.
Samsung Electro-Mechanics announced on the 28th that it had decided to invest a total of KRW 4.27 trillion to expand Flip Chip Ball Grid Array (FCBGA) production capacity at its Sejong Plant. The investment will run from this month through May 2028. The new production line is scheduled to begin operations and mass production in September 2028.
This is Samsung Electro-Mechanics' largest-ever investment in a single product. The investment represents 43.6% of the company's equity based on its consolidated financial statements at the end of last year.
In July, Samsung Electro-Mechanics announced plans to invest approximately KRW 8 trillion in its Sejong Plant from 2026 to 2040 as part of its investment plan for advanced industries in the Chungcheong region. The Sejong Plant is Samsung Electro-Mechanics' domestic production hub for semiconductor substrates.
FCBGA is a semiconductor substrate that connects high-performance semiconductors, such as AI accelerators, graphics processing units (GPUs), and central processing units (CPUs), to mainboards to supply electrical signals and power. It is considered a key component that determines the performance and reliability of AI semiconductors.
Demand for FCBGA is growing alongside the expansion of the AI server and high-performance computing (HPC) markets. As high-performance chips are increasingly integrated into AI semiconductors, substrates are also shifting toward large-area, high-layer-count, high-density structures.
Samsung Electro-Mechanics plans to use this expansion to meet demand for substrates for AI servers, HPC systems, and automotive applications. The investment is being pursued through medium- to long-term cooperation with global big tech customers. Under the arrangement, customers will provide funding for new equipment investments and guarantee medium- to long-term volumes. This will allow Samsung Electro-Mechanics to reduce its initial investment burden while securing sufficient volumes to support utilization of the new production line.
Samsung Electro-Mechanics plans to use the Sejong Plant as a production hub for high-value-added substrates and respond to customers' demands for expanded medium- to long-term supplies through the capacity expansion.
Samsung Electro-Mechanics expects demand for server substrates to grow as AI infrastructure investment continues over the next two to three years.
Jang Deok-hyun, President of Samsung Electro-Mechanics, 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. Samsung Electro-Mechanics will be able to strengthen the competitiveness of its FCBGA business in high-growth markets such as AI, servers, and automotive applications based on its differentiated substrate technology and stable supply capabilities."
[email protected] Park Ji-yeon Reporter