Additional Investment in Busan Plant Following Vietnam
[Asia Economy Reporter Kim Jin-ho] Samsung Electro-Mechanics announced on the 21st that it will invest 300 billion KRW to expand its semiconductor package substrate (FCBGA) factory and establish production facilities. This investment will take place at the Busan plant.
Previously, Samsung Electro-Mechanics decided to invest 1.3 trillion KRW in package substrate production facilities at its Vietnam manufacturing subsidiary. With this additional investment, the total amount invested in package substrate expansion has increased to 1.6 trillion KRW.
Through this investment, Samsung Electro-Mechanics plans to actively respond to the increasing demand for package substrates driven by the high performance and market growth of semiconductors, and to establish a foundation for securing a leading position in the rapidly growing package substrate market and entering the high-end product segment.
Package substrates are semiconductor package substrates that connect highly integrated semiconductor chips and main substrates to transmit electrical signals and power. They are mainly used in CPUs (Central Processing Units) and GPUs (Graphics Processing Units), which require high-performance and high-density circuit connections.
The high-end package substrate market is expected to grow at an annual rate of about 20% in the mid to long term, as demand increases for various applications requiring high-speed signal processing. In particular, with the advancement of CPU performance, the number of substrate layers is increasing and demand is growing centered on larger sizes, so the supply and demand situation for package substrates is expected to remain tight until 2026 despite industry supply expansion.
Jang Deok-hyun, President of Samsung Electro-Mechanics, said, "With the advancement of semiconductor performance and the expansion of AI, cloud, and metaverse, it is becoming increasingly important for semiconductor manufacturers to secure technologically capable package substrate partners," adding, "Samsung Electro-Mechanics plans to focus on developing technologies that can provide customers with new experiences to enhance competitiveness."
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