Samsung Electro-Mechanics signs semiconductor substrate supply deal worth 360.5 billion won with global customer; cumulative total reaches 4.3 trillion won this year

[Financial News] Samsung Electro-Mechanics has signed a long-term supply agreement (LTA) worth about 360 billion won with a major global customer for package substrates for memory semiconductors. The company aims to respond to growing demand for high-performance memory as the artificial intelligence (AI) and high-performance computing (HPC) markets expand, while securing a stable earnings base through LTAs.
Samsung Electro-Mechanics said on the 19th that it had signed a 360.5 billion won supply agreement with a major global company for package substrates for memory semiconductors. The one-year contract runs from January 1 through December 31 next year, and the company plans to supply the customer with package substrates for high-performance memory semiconductors.
Package substrates are key components that connect semiconductor chips to main circuit boards and transmit electrical signals. As the high-performance memory market—including high-bandwidth memory (HBM) and server DRAM—has grown amid the recent spread of generative AI and increased demand for HPC, the importance of package substrates has also increased.
In particular, as memory semiconductors become faster and more highly integrated, package substrates also require sophisticated technologies, including multilayer construction, fine circuitry and ultra-thin designs. Samsung Electro-Mechanics is addressing the high-performance package substrate market with technologies such as large-area fine-circuit implementation and substrate warpage control.
With this agreement, Samsung Electro-Mechanics has expanded its LTAs from components to its package solutions business. Since May this year, the company has successively signed large-scale supply agreements in key component areas, including silicon capacitors, multilayer ceramic capacitors (MLCCs) for AI servers and inductors, within its Components business.
As a result, the number of disclosed long-term supply agreements signed since May this year has risen to seven. Their cumulative value amounts to about 4.3 trillion won. Samsung Electro-Mechanics plans to expand long-term supply partnerships with key customers to reduce earnings volatility caused by fluctuations in the semiconductor industry and stabilize its earnings structure.
Samsung Electro-Mechanics said, “The growth of the AI and high-performance computing markets is making high-performance package substrates increasingly important,” and added, “We plan to strengthen supply partnerships with customers and establish a stable supply system to continue enhancing the competitiveness of our package substrate business.”
[email protected] Im Su-bin Reporter