According to reports, Samsung Electro-Mechanics approved an expenditure of US$850 million for the production of Flip Chip Ball Grid Array (FC-BGA) equipment and infrastructure in Vietnam. The company will spend this budget before 2023 to build a new FC-BGA production line.

The FC-BGA package is mainly used for CPUs for servers and PCs, and the FC-BGA for server processors is the most expensive among them.

According to industry insider, Samsung expects to produce FC-BGA for PC and network processors, and the customer may be Intel. The company may remove the existing equipment that produces rigid-flex printed circuit boards (RFPCB) at its factory in Vietnam and replace them with FC-BGA equipment.

The insider also said that Samsung is very likely to announce an additional expenditure plan for FC-BGA at the same time to establish another new independent production line. The company currently provides FC-BGA for PCs to a non-Intel customer, but plans to provide them with FC-BGA for servers.

A Samsung Electro-Mechanics spokesperson said that the company is planning to use its Vietnamese subsidiary as a production base for FC-BGA, and its facilities in Suwon and Busan, South Korea, will be used for research and production of high-end FC-BGA.