Samsung Electro-Mechanics Plans to Supply Semiconductor Substrates for AI Accelerators
Jang Deok-hyun, CEO of Samsung Electro-Mechanics, stated on the 30th that the company is considering expanding its multilayer ceramic capacitor (MLCC) production next year, with the Philippines plant being a strong candidate.
Before a special lecture held at Pohang University of Science and Technology (POSTECH) in Pohang, Gyeongbuk, Jang told reporters, "Currently, with high MLCC utilization rates, it seems necessary to expand production capacity to meet the increasing demand in artificial intelligence (AI) and automotive electronics." He added, "We are considering the Philippines plant," and said, "If we invest, it will take about two years to complete and operate the factory, so we need to build it quickly." Regarding the investment scale, he said, "We will decide considering market demand and other factors." This is the first official mention by Samsung Electro-Mechanics of expanding MLCC capacity at its Philippine production subsidiary.
Earlier this month, Samsung Electronics Chairman Lee Jae-yong also visited the Philippine site and toured the MLCC factory, urging the company to secure a leading position in the AI and electric vehicle markets. As demand for AI and automotive components surges, Samsung Electro-Mechanics plans to expand the Philippines as a global MLCC production hub to respond to changes in the electronics industry. MLCCs are key components that store electricity and supply it stably as needed to ensure semiconductors operate smoothly. They are essential in all electronic devices, often called the "rice of the electronics industry."
Plan to Supply Advanced Semiconductor Substrates... Aiming to Accelerate AI
On the 29th, Jang Deok-hyun, President of Samsung Electro-Mechanics, gave a lecture to about 150 undergraduate and graduate students of the Department of New Materials Engineering at POSTECH. [Photo by Samsung Electro-Mechanics]
Jang also revealed plans to supply advanced semiconductor substrates (FCBGA) for AI accelerators. FCBGA is a special substrate that connects semiconductor chips to the substrate quickly and reliably, enhancing data processing speed, and is used in AI and high-performance computers.
Jang said, "We plan to supply AI accelerator substrates to one of the four North American cloud service providers (CSPs)," adding, "We will start small-scale mass production in the second half of this year and begin full-scale mass production next year."
When asked if there are plans to supply Nvidia in the future, Jang replied, "My dream is to work with all customers."
During the special lecture at POSTECH, attended by about 150 undergraduate and graduate students from the Department of Materials Science and Engineering, Jang said, "The survival of future companies depends on how well they secure core technologies," and identified six mega-trends leading the digital future: ▲Automotive ▲AI ▲Energy ▲Humanoids ▲Digital Transformation (DX) ▲Aerospace.
Jang explained, "The automotive industry is rapidly transitioning from traditional internal combustion engines to electric vehicles and autonomous driving technologies, evolving from a means of transportation to smart mobility devices," and noted that demand for IT components such as batteries, semiconductors, and sensors is increasing significantly in this process. He added that AI development is accelerating changes across industrial structures, stating, "Following the PC industry in the 1980s and the mobile industry in the 2000s, automation based on AI is now transforming industries as a whole."
Jang mentioned that this year’s Nobel Prize winners in Physics and Chemistry were recognized for AI-based research achievements, highlighting AI’s significant impact not only on industry but also on academia and research. He said, "Semiconductors are evolving alongside the rapidly advancing AI," and added, "Demand is expanding for ultra-high-speed, ultra-high-capacity, and high-reliability package substrates and passive components for AI applications."
'Mi-RAE Project' to Secure Future Technologies
Jang Deok-hyun, President of Samsung Electro-Mechanics, giving a lecture [Photo by Samsung Electro-Mechanics]
Jang stated, "Samsung Electro-Mechanics is operating the 'Future (Mi-RAE) Project' to prepare for the future of the electronics industry, securing core technologies such as MLCC, package substrates, and camera modules to respond to future growth markets including automotive electronics, robotics, AI servers, and energy."
He emphasized, "The realization of future industry technologies must be based on components and materials," and said, "Samsung Electro-Mechanics is developing technology to reduce MLCC size while maximizing capacity, and is preparing products that maximize semiconductor performance through high multilayering and large-area technologies in package substrates."
Concluding his lecture, Jang said, "There are no limits in engineering," and added, "Challenges that go beyond limits are the driving force that changes the world." He urged the students, saying, "The materials you research are the foundation of technologies that change the world and are key to realizing super-gap technologies. Please lead the future industry with a bold spirit of challenge."
Samsung Electro-Mechanics explained, "We are focusing our capabilities on nurturing and securing outstanding talent to strengthen competitiveness in materials and component technologies," and added, "CEO Jang Deok-hyun also gave a special lecture in April at his alma mater, Seoul National University’s Department of Electrical and Electronic Engineering, to secure talent."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
