July 1, 2026 /SemiMedia/ — Samsung Electro-Mechanics plans to expand production capacity for flip-chip ball grid array substrates used in AI servers, as demand for advanced packaging materials continues to grow.

Samsung Electronics Chairman Lee Jae-yong said on June 29 that the company will increase investment in advanced package substrate manufacturing centered on Samsung Electro-Mechanics’ Busan plant. He said these substrates are critical for AI servers, conventional servers, computers and electric vehicles.

The comments confirmed Samsung Electro-Mechanics’ plan to expand FC-BGA substrate capacity at its Busan facility, one of the company’s key domestic production sites for the product.

Samsung Electro-Mechanics currently produces FC-BGA substrates at its Busan and Sejong plants in South Korea, while mass production is also carried out at its Thai Nguyen plant in Vietnam. The company is expected to accelerate capacity expansion across Busan, Sejong and Vietnam.

Supply chain sources said Samsung Electro-Mechanics is also considering an expansion of its Sejong plant to meet demand from major North American technology companies for additional AI server FC-BGA capacity. In April, the company submitted a letter of intent for an investment of up to 1.8 trillion won to expand its Thai Nguyen facility.

FC-BGA is a high-value semiconductor package substrate used to connect semiconductor chips to printed circuit boards. It is a key component in AI accelerators, networking semiconductors, server processors and other high-performance chips.

As AI servers adopt larger and more power-intensive chips, demand is increasing for FC-BGA substrates with larger form factors, higher layer counts and stronger reliability. These substrates must support high-speed signal transmission, power integrity and thermal performance requirements.

Industry analysts said FC-BGA has become one of the important bottlenecks in the advanced packaging supply chain. Expanding capacity could strengthen Samsung Electro-Mechanics’ position in the high-end substrate market while supporting Samsung Group’s broader AI infrastructure strategy.

Competition among FC-BGA suppliers is expected to intensify as AI servers, data center networking equipment and electric vehicle electronics continue to expand. Samsung Electro-Mechanics, Ibiden, Unimicron, Kinsus and other high-end substrate makers are increasing investment and technology development to secure AI chip customers.