Samsung Electro-Mechanics invests in capacity expansion
Samsung Electro-Mechanics invested 300 billion won ($247 million) to ramp up semiconductor package substrate capacity at its plant in Busan.
The funding will be used to produce flip-chip ball grid array (FCBGA) packages, a sophisticated type of chip substrate designed to bind together high-performing processors and protect them from the surrounding environment.
The electric component company 23.7 percent owned by Samsung Electronics explained that the decision is intended to meet the surge in demand for chips used in PCs and servers.
The move follows a separate investment of $850 million into its Vietnamese manufacturing plant to produce the same type of substrate, which was announced in December.
The large-scale investment will be spent in stages through 2023.
With the soaring demand for processors, the high-end package substrate market will likely enjoy sound annual growth of 20 percent in the mid-to-long term, according to the company.
Given only few suppliers hold the technology for FCBGA, Samsung Electro-Mechanics expects the product to be in short supply through 2026.
BY PARK EUN-JEE [email@example.com]