Samsung Electro-Mechanics to invest $3.14 bil. for substrate plant in Sejong

Samsung Electro-Mechanics said Monday it will invest 4.27 trillion won ($3.14 billion) to expand its semiconductor substrate production capacity at its plant in Sejong, marking the largest amount of capital expenditure on a single product in the company’s history. According to its regulatory filing, the company will expand its production capacity for flip chip ball grid array (FC-BGA) substrates at the Sejong plant to meet growing demand from artificial intelligence (AI) servers. The investment will run from September 2026 through May 2028, with mass production on the new lines scheduled to begin in September 2028. This is part of the company’s commitment announced in July that it will invest 8 trillion won in the nation's central Chungcheong region, which includes Sejong, and 15 trillion won in the Busan area by 2040. FC-BGA is a highly integrated semiconductor substrate that connects high-performance chips — such as AI accelerators, graphics processing units and central processing units — to mainboards, transmitting electrical signals and supplying power. Demand for FC-BGA subst