Samsung Electro-Mechanics: The potential of IC substrates far exceeds that of foundry, and the goal is to be third in the world

Samsung Electro-Mechanics announced that the company's semiconductor substrate production has continued to increase, from 495,000 square meters in 2019 to 703,000 square meters in 2021, equivalent to 100 football fields. Due to the continuous shortage of substrates, the company's production rate is approaching 100%.

As more and more large technology companies begin to join the ranks of self-developed chips, this will undoubtedly lead to a surge in demand. According to data, the market size of FC-BGA will grow by more than 10% every year in the next five years, and the market value will rise from US$11.3 billion to US$17 billion in 2026.

"In terms of future projected growth rates, the semiconductor packaging substrate market is expected to expand faster than the chip, foundry or chip packaging market," said Ahn Jung-hoon, director of Samsung Electro-Mechanics. Although the semiconductor substrate market is smaller than foundry, Growth potential is far greater than foundry.

Over the past two years, Samsung Electro-Mechanics has spent nearly 2 trillion won to expand its three FC-BGA plants in Busan, Sejong and Vietnam.

To enter new market segments and meet growing demand, Samsung Electro-Mechanics announced last December that it would invest 1.3 trillion won to produce FC-BGA substrates at its Vietnam manufacturing plant.

In June this year, Samsung Electronics once again announced that it will invest an additional 300 billion won in the construction of FC-BGA production facilities.

Samsung Electro-Mechanics said that it will continue to expand the production of high-end products, aiming to become the third largest manufacturer of semiconductor substrates, second only to the Japanese factory Ibiden and Shin-Opto-Technology.