Samsung Electro-Mechanics has announced a major investment of 1.8 trillion won (US$1.2 billion) in Vietnam as part of its strategy to expand production capacity for advanced semiconductor substrates used in artificial intelligence applications. The move highlights the company’s efforts to capitalize on the rapidly growing demand for AI-driven technologies and strengthen its position in the global semiconductor supply chain.
The investment will be directed toward scaling up manufacturing of flip-chip ball grid array (FC-BGA) substrates at its Vietnamese facility. These high-value semiconductor components play a critical role in AI servers, high-performance computing systems, and data centres, where performance, heat management, and signal efficiency are essential.
Samsung Electro-Mechanics has already secured the necessary investment registration from Vietnam’s authorities, signalling that the expansion is moving forward as planned. The company aims to address ongoing supply constraints in the FC-BGA market, which have intensified due to the surge in demand driven by generative AI and large-scale data centre deployments.
The scale of this investment matches the company’s earlier 1.2-billion-dollar commitment made in 2013 when it first established its manufacturing presence in Vietnam. However, the focus has now shifted significantly from consumer electronics components toward high-value AI-related semiconductor substrates, reflecting broader changes in the global tech landscape.
Samsung Electro-Mechanics currently supplies these advanced substrates to major global technology companies, and its customer base is expected to expand further as demand for AI chips continues to grow. The FC-BGA market itself is projected to grow at an average annual rate of more than 15 percent from 2025 to 2030, underscoring the long-term potential of this investment.
With this move, Samsung Electro-Mechanics is reinforcing its commitment to next-generation semiconductor technologies, positioning its Vietnam operations as a key hub for AI chip production and supporting the broader evolution of high-performance computing infrastructure worldwide.
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