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Samsung Electro-Mechanics Aims To Increase Sales Ratio Of FC-BGA Products To More Than 50%

Update : September 19, 2024

Samsung Electro-Mechanics, a leading electronic component manufacturing subsidiary of Samsung Electronics, has announced its ambitious plans to expand its influence in the high-end semiconductor substrate market. The company is significantly increasing investment and production of high-performance flip chip ball grid array (FC-BGA) substrates, especially for server and artificial intelligence (AI) applications.

 

With a strategic focus on high value-added FC-BGA products, Samsung Electro-Mechanics aims to increase the sales ratio of these advanced substrates to more than 50% by 2026. FC-BGA substrates are essential components in semiconductor packaging and are widely used in central processing units (CPUs) and graphics processing units (GPUs) in servers and PCs. These substrates are essential for ensuring high-performance and high-density circuit connections, playing a vital role in next-generation AI and server technologies.

 

Samsung Electro-Mechanics

 

Innovative Technological Advances and Investments

 

Samsung Electro-Mechanics has taken a leading position in the high-end FC-BGA market with cutting-edge technology and significant investments. The company has invested approximately 1.9 trillion won (about $1.6 billion) to enhance its FC-BGA production capabilities, with a particular focus on substrates for server and AI applications. The investment includes the development of state-of-the-art facilities in Busan, South Korea, and Vietnam, which have implemented advanced automated logistics and smart manufacturing systems. These systems utilize AI and deep learning technologies to optimize manufacturing processes, ensuring stable production and high product quality.

 

As the first company in Korea to mass-produce server FC-BGA, we are committed to strengthening our competitiveness and leading the market with our unique technology,said Hwang Chi-won, head of the packaging development team at Samsung Electro-Mechanics. We have successfully developed and are mass-producing high-performance FC-BGA substrates that meet the demanding requirements of global semiconductor companies.

 

Strategic Partnerships and Market Growth

To strengthen its market position, Samsung Electro-Mechanics recently signed a major supply contract with AMD, a global leader in high-performance computing, to provide FC-BGA substrates for large data centers. The substrates will be produced at the companys Busan and Vietnam facilities and are expected to meet the growing demand for high-performance server and AI technologies.

 

Market research firm QY Research forecasts that the global FC-BGA market will be worth $4.7 billion in 2022 and grow to $6.5 billion by 2028, driven by strong growth rates in servers (6.2%) and AI (18.5%). Samsung Electro-Mechanics' advanced technologies, such as ultra-fine circuit implementation and high-layer count capabilities, enable the company to capture a significant share of this expanding market.

 

Future Outlook

Looking ahead, Samsung Electro-Mechanics is poised to continue its leadership in the semiconductor substrate market by further enhancing its technological capabilities and expanding production capacity. The company plans to introduce more innovations and maintain strong partnerships with industry giants to meet the evolving needs of the AI ​​and server markets.

 

"We are committed to leading the semiconductor substrate market with unparalleled technological advancements," added Mr. Huang. "By focusing on high-value markets such as AI networks and autonomous driving, we aim to drive future growth and maintain industry leadership."

 

About Samsung Electro-Mechanics

Samsung Electro-Mechanics is a globally renowned electronic parts manufacturer and a key subsidiary of Samsung Electronics. The company specializes in high-end semiconductor substrates and components, leveraging decades of experience and cutting-edge technologies to provide innovative solutions to the global market.