Samsung Electro-Mechanics Signs 360.5 Billion Won Packaging Substrate Supply Contract

ChainCatcher report, according to THE ELEC, Samsung Electro-Mechanics announced on October 19 that it has signed a supply contract for packaging substrates for memory semiconductors with a global major corporation, valued at KRW 360.5 billion. The contract period runs from January 1, 2027, to December 31, 2027, equivalent to 3.2% of the company’s consolidated revenue last year. This marks Samsung Electro-Mechanics’ first disclosure of a long-term packaging substrate supply contract. Including this agreement, the company has now disclosed seven long-term supply contracts this year, totaling approximately KRW 4.3 trillion. Previous contracts primarily focused on components such as silicon capacitors, multilayer ceramic capacitors, and inductors; this expansion now includes packaging solutions, which produce products such as FC-BGA and BGA substrates. Last month, Samsung Electro-Mechanics announced investments of KRW 427 billion and KRW 251 billion in its Sejong FC-BGA production facility and Vietnam packaging substrate equipment, respectively. The company also stated that, as part of a government-led large-scale initiative, it plans to invest KRW 800 billion in its Sejong facility and KRW 1.5 trillion in its Busan facility by 2040, producing FC-BGA substrates in Busan, Sejong, and Vietnam. A Samsung Electro-Mechanics representative said: “Growing demand in the AI and high-performance computing markets has increased the importance of high-performance packaging substrates; the company will strengthen customer collaboration and establish a stable supply system.”