Samsung Electro-Mechanics Invests KRW 1.8 Tril. in Vietnam

Responding to surging demand for AI substrates
Orders from big-tech companies expected to increase

Samsung Electro-Mechanics plans to invest KRW 1 trillion in its Vietnam production base to expand the production of semiconductor substrates, aiming to resolve production-capacity limitations and enhance supply responsiveness amidst the rapidly increasing demand for high-value-added substrates for artificial intelligence (AI).
According to Bloomberg, the company will invest US$ 1.2 billion (approximately KRW 1.8 trillion) to expand production facilities for flip-chip ball greed array (FC-BGA photo) at its Vietnam production base. It has also completed investment registration procedures with the Vietnam Foreign Investment Agency for AI-related FC-BGA production.

This investment is reported as a strategy to restructure its existing production base to focus on high-value-added substrates. FC-BGA is a high-density package substrate in which semiconductor chips are mounted upside down on a substrate and connected by using fine metal balls.
The scale of this investment is comparable to the company’s initial entry into Vietnam in 2013 when it constructed a camera-module and printed circuit board (PCB) plant. This is a trillion-dollar investment made again after 13 years.
It customer base is also expanding quickly. Samsung Electro-Mechanics is supplying substrates to global tech firms such as Broadcom, Google, and Amazon.

The company recently secured a deal to supply FC-BGA to Grock 3 language processing unit (LPU), a dedicated inference chip installed in Nvidia’s next-generation AI semiconductor Vera Rubin, with mass-production expected to begin in the second quarter of this year.
There is also growing speculation that its FC-BGA could be adopted for Tesla’s AI chip, the AI6, signaling further expansion of its big-tech client base.

 
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