Samsung Electro-Mechanics has announced a Samsung Electro-Mechanics FCBGA expansion totalling Won6.78tn ($5.07bn equivalent is not sourced; the announced total is Won6.78tn), committing approximately Won2.51tn ($1.88bn) to its Vietnam subsidiary and Won4.27tn to its Sejong site in South Korea, as demand for advanced semiconductor substrates accelerates alongside growth in artificial intelligence computing.
The two-site programme will extend the company’s capacity to produce flip-chip ball grid array (FCBGA) substrates, components that carry electrical signals and power between advanced processors, including AI accelerators, GPUs and CPUs, and the mainboard. Samsung Electro-Mechanics intends to use the Vietnam facility as a high-volume manufacturing base for international customers, while Sejong will concentrate on complex, high-value-added products for applications such as AI servers.
Vietnam facility targets international volume by 2030
Construction at the Vietnam site is scheduled for completion by June 2030, when operations are expected to begin. According to MK, Samsung Electro-Mechanics has already completed the investment registration process for AI-dragon FC-BGA production with the Vietnam Agency of Foreign Investment, clearing an early procedural step ahead of the build programme.
The Vietnam operation is designed to improve production efficiency and supply continuity for customers outside South Korea. Samsung Electro-Mechanics said global customer financing and mid- to long-term volume commitments underpin the broader investment programme. Those arrangements are expected to reduce the financial risk associated with building new facilities, support factory utilisation rates, and moderate operating-cost pressure as the expanded network comes online.
The timing is deliberate. Market research firm Prismark forecasts that the FC-BGA market will grow at an average annual rate of over 15% from 2025 to 2030, a trajectory that Samsung Electro-Mechanics is clearly positioning itself to capture through committed customer volume rather than speculative capacity alone.
Samsung Electro-Mechanics FCBGA expansion at Sejong: the company’s largest single-product bet
The Sejong project, which Samsung Electro-Mechanics describes as its largest investment in a single product, is due to run from September 2026 to May 2028. Mass production at the site is scheduled to begin in September 2028.
Sejong will produce substrates with larger surface areas and more layers to meet the requirements of increasingly demanding semiconductor designs. The site is focused on high-value-added FCBGA products, principally for AI server applications. Of the total Won6.78tn committed across both sites, Won4.27tn is earmarked for additional FCBGA capacity at Sejong, making it the larger of the two investments by some distance.
FCBGA substrates have become a critical pinch point in the semiconductor supply chain. As processors grow more powerful and package designs more intricate, the substrate connecting chip to board must carry higher signal densities and handle greater thermal loads. Supply constraints in this segment have drawn attention from chipmakers and their customers over recent years, making new capacity a competitive priority.
Samsung Electro-Mechanics president Chang Duckhyun set out the company’s reasoning plainly. ‘As the AI and high-performance computing markets grow rapidly, high-value-added semiconductor substrates are becoming increasingly important as key components that determine semiconductor performance and supply chain stability,’ he said. ‘Based on differentiated substrate technology and stable supply capabilities, Samsung Electro-Mechanics will be able to strengthen the competitiveness of its FCBGA business in high-growth markets such as AI servers and automotive electronics.’
The reference to automotive electronics is a reminder that FCBGA demand is not solely an AI story. Advanced driver-assistance systems and in-vehicle computing platforms are also driving substrate requirements upward, broadening the addressable market beyond data-centre builds.
With investment registration in Vietnam now complete and the Sejong timeline running from late 2026, the company’s next concrete milestone is the start of construction at both sites. Mass production at Sejong is set for September 2028, with Vietnam coming online by June 2030.
