Samsung Announced 6.78 Trillion Won Substrate Investment
The manufacturer is expanding capacity in Sejong and Vietnam to meet demand for AI servers and high-performance computing.
Updated on Sept. 28, 2026 in Semiconductors
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Samsung Electro-Mechanics has announced a 6.78 trillion Korean won investment to expand its substrate production facilities. This announced capital expenditure focuses on producing flip-chip ball grid array substrates to support the rising demand for artificial intelligence infrastructure.
Why it matters
This expansion aims to secure production volume for high-performance computing and AI server components, reflecting a shift toward long-term business stability in the semiconductor supply chain. The investment reflects current industry trends expecting significant growth in substrate demand over the next three years.
The Sejong project represents 43.6% of the company's 2025 consolidated equity capital, while the Vietnam expansion equals 103.4% of the subsidiary's total 2025 assets. These facilities will produce high-density flip-chip ball grid array substrates.
The players
Samsung Electro-Mechanics
A global electronics component manufacturer specializing in high-density interconnect substrates, multilayer ceramic capacitors, and camera modules.
The details
The investment expands infrastructure for flip-chip ball grid array substrates—a type of high-density interconnect used to mount processors to circuit boards. By collaborating with major technology clients to share capital expenditure funding, the company aims to optimize production capacity for next-generation chips. This architecture supports the power and data density requirements of modern AI servers and high-performance computing clusters.
Timeline
September 28, 2026: Samsung Electro-Mechanics disclosed investment plans.
April 30, 2028: Scheduled acquisition date for the Vietnam facility expansion.
May 31, 2028: End date for the Sejong facility investment period.
September 2028: New production line is scheduled to begin mass production.
The Tech Race
This move directly responds to the supply squeeze caused by the rapid scaling of high-performance computing and artificial intelligence workloads. By aligning with big tech customers for capital support, Samsung is positioning its production roadmap to compete directly with other suppliers currently scaling specialized substrate output.
This capacity increase will eventually stabilize the supply chain for advanced AI servers that power modern large language models and cloud platforms. Users should not expect immediate changes, as the mass production capability at these new lines is not scheduled until late 2028.
The takeaway
This significant capital commitment signals that the company anticipates sustained demand for high-performance chips well beyond the current AI cycle. Market observers should track the progress of the Sejong facility construction against the scheduled September 2028 operational milestone.
What happens next
Mass production is scheduled to begin at the new Sejong line in September 2028.
Further reading
For more on the manufacturing landscape, visit Semiconductors.
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