Samsung Electro-Mechanics Announced 6.78 Trillion Won Expansion
The company will boost production capacity in Sejong and Vietnam to meet rising demand for AI server components.
Updated on Sept. 28, 2026 in Semiconductors
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Samsung Electro-Mechanics has unveiled a 6.78 trillion Korean won investment plan to expand its substrate production facilities. The capital will be split between the company's Sejong complex and a Vietnam subsidiary to bolster output for high-performance computing.
Why it matters
The massive investment aims to capture growing demand for AI servers and high-performance semiconductors. By securing additional production volume, the company intends to ensure long-term business stability in the evolving hardware market.
The Sejong facility will focus on manufacturing flip-chip ball grid array substrates. This expansion builds out the necessary infrastructure to scale production of high-density semiconductor substrates.
The players
Samsung Electro-Mechanics
This is a South Korean electronic component manufacturer that produces circuit boards, camera modules, and semiconductor substrates.
The details
Samsung Electro-Mechanics is collaborating with major technology customers to share capital expenditure funding for the new capacity. This partnership is designed to scale infrastructure specifically for the high-density semiconductor substrates required by next-generation computing systems.
Timeline
September 28, 2026: Investment plans were publicly disclosed by the firm.
April 30, 2028: The Vietnam facility expansion is scheduled for acquisition.
May 31, 2028: The investment period for the Sejong complex concludes.
September 2028: Mass production is expected to begin at the new Sejong line.
The Tech Race
This move represents a strategic pivot toward high-density substrates, which are becoming the bottleneck in the global AI hardware supply chain. It positions Samsung Electro-Mechanics to remain competitive against rival component manufacturers also rushing to expand their footprints.
As production capacity for high-performance substrates increases, consumers may eventually see more stable supply chains for high-end AI servers and advanced personal devices. This expansion supports the underlying hardware that powers modern artificial intelligence applications.
The takeaway
Large-scale investments in sub-component manufacturing are critical to supporting the rapid growth of artificial intelligence. Readers should track these supply-chain expansions as indicators of where major tech companies are placing their bets for future infrastructure dominance.
Further reading
Learn more about the evolving landscape of chip manufacturing in our Semiconductors section.
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