October 7, 2026 / SemiMedia / — Samsung Electro-Mechanics plans to invest approximately KRW6.78 trillion, or nearly $5 billion, across Korea and Vietnam to expand production of FC-BGA semiconductor substrates for AI servers, high-performance computing and other high-growth applications.

The company will invest KRW4.27 trillion at its Sejong manufacturing site in South Korea to expand high-performance FC-BGA capacity. The project represents Samsung Electro-Mechanics' largest investment to date in a single product, with construction and equipment spending scheduled from September 2026 through May 2028. Mass production is planned to begin in September 2028.

A further KRW2.51 trillion will be invested in the company's Vietnam subsidiary to expand FC-BGA manufacturing capacity. The Vietnam project is scheduled to be completed and begin operations by June 2030, strengthening the country's role in Samsung Electro-Mechanics' global semiconductor substrate production network.

FC-BGA substrates connect high-performance processors such as AI accelerators, GPUs and CPUs to system boards while carrying high-speed electrical signals and power. As AI processors become larger, more power-intensive and more complex, substrates are also moving toward larger formats, higher layer counts and denser interconnect structures.

Samsung Electro-Mechanics expects AI infrastructure investment to remain strong over the next two to three years. The expansion is also supported by funding from global customers and medium- to long-term volume commitments, giving the company greater demand visibility as new capacity comes online.

The Sejong site will focus on high-value and technically demanding FC-BGA products, while the Vietnam operation will serve as a major volume production hub aimed at improving manufacturing efficiency and supply stability.

The investment reflects the growing importance of advanced semiconductor substrates in the AI hardware supply chain, with demand expanding beyond servers into HPC, automotive electronics and networking systems.