Samsung Electro-Mechanics will invest 4.27 trillion won to expand semiconductor package substrate production at its Sejong plant. The investment period runs through May 2028, with mass production from the new lines planned for September 2028.
The expansion focuses on flip-chip ball grid array, or FC-BGA, substrates. These high-density boards connect processors such as AI accelerators and GPUs to mainboards while carrying electrical signals and power.
Samsung Electro-Mechanics says demand for premium FC-BGA products is rising rapidly with the growth of the AI market. The company described the 4.27 trillion won plan as its largest investment tied to a single product category.
Domestic AI hardware capacity
For Korea's manufacturing sector, the project adds domestic capacity in a component that sits inside the AI semiconductor supply chain. That links an established electronics manufacturing base to the rapid global buildout of AI servers and data centers.
The execution timeline now becomes the key measure. The company must complete the expansion, qualify the new capacity with customers and bring the lines into stable mass production as planned in 2028.