According to Korean media reports, Samsung Electro-Mechanics announced on the board of directors on December 12 that it will liquidate its subsidiary in Kunshan, China, and officially withdraw from the High Density Interconnection (HDI) business.
According to related reports, Kunshan Samsung Electro-Mechanics was established in 2009, and officially launched HDI mass production in June 2010, becoming Samsung's main HDI production base.
Some analysts believe that the reason why Samsung Electro-Mechanics decided to withdraw from the HDI business was due to the continuous decline in profitability due to fierce price competition. Kunshan Samsung Electro-Mechanics has been losing money for five years, making the entire HDI business unprofitable.
The report pointed out that after exiting the HDI business, Samsung Electro-Mechanics will focus on the semiconductor package substrate and RFPCB fields to improve profitability.