Samsung, there is still a hidden trick

Latest update time：2024-10-02

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Source: Content from wikileaks-kr, thank you.

Samsung Electro-Mechanics is advancing into the global market by expanding its semiconductor package substrate business. Since starting the substrate business in 1991, Samsung Electro-Mechanics has been supplying products to major global companies and taking a leading position in the substrate industry with its differentiated technological strengths.

Samsung Electro-Mechanics achieved sales of 2.5801 trillion won and operating profit of 208.1 billion won in the second quarter of this year, a 16% increase in sales and a 2% increase in operating profit compared to the same period last year.

While sales fell 2% compared to the first quarter, operating profit increased 15%.

A Samsung Electro-Mechanics official said, “Sales declined compared to the previous quarter due to a decrease in supply of some products due to the seasonal off-season, but sales and operating profit increased compared to the same period last year due to increased sales of high value-added products such as MLCCs (multilayer ceramic capacitors) for industrial and automotive use and high-performance semiconductor package substrates for servers.”

Semiconductor packaging substrate is a product that connects highly integrated semiconductor chips and motherboards to transmit electrical signals and power. With the changes in industrial paradigms such as servers, AI, and cloud computing, semiconductor substrates have become the key to distinguishing semiconductor performance.

If the semiconductor chip is compared to the brain, then the semiconductor substrate can be compared to the nerves and blood vessels.

In the semiconductor packaging solutions sector, Samsung Electro-Mechanics achieved sales of 499.1 billion won, up 14% from the same period last year and 17% from the previous quarter. This was due to the increase in sales of high-value-added packaging substrates such as BGA (ball grid array) for ARM processor substrates, memory substrates, and FCBGA (flip chip ball grid array) for servers and vehicles.

A Samsung Electro-Mechanics official stressed, “In the field of semiconductor substrates for the highest-specification mobile application processors (APs), we have taken an overwhelming first place with our market share and technological strength. Recently, we are concentrating our efforts on securing future leading technologies, such as next-generation core technologies such as ultra-large areas, ultra-high layers, and ultra-fine circuits.”

Last month, Samsung Electro-Mechanics demonstrated its influence in the substrate industry by showcasing its core technology of FCBGA for high-end AI/servers and next-generation packaging substrate technology at the 'KPCA Show 2024'.

FCBGA is a high-density packaging substrate used to connect highly integrated semiconductor chips to motherboards and is considered a high-end substrate.

In July this year, Samsung Electro-Mechanics signed a supply contract with AMD, a global semiconductor company, for FCBGA for high-performance computing servers and started mass production of the products. By 2026, it plans to increase the proportion of high-value-added FCBGA products such as servers, AI, automotive, and networks to more than 50%.

An official from Samsung Electro-Mechanics said, “The substrate area of FCBGA for servers is more than four times larger than that of FCBGA for ordinary PCs, and the number of layers exceeds 20, which is more than twice that of ordinary PCs. Therefore, the large-scale substrate and high-layer number make it difficult for latecomers to enter the field of manufacturing technology to improve product reliability and production yield, as well as the construction of dedicated equipment.”

Currently, through large-scale investments (amounting to 1.9 trillion won) in new factories in Busan and Vietnam, advanced mass production bases for high-end products have begun operations.

According to market research firm Prismark, the semiconductor substrate market is expected to grow from 15.2 trillion won this year to 20 trillion won in 2028, with an average annual growth rate of about 7%.

“Samsung Electro-Mechanics is expanding its collaboration with major global customers with its world-class packaging substrate technology,” said Kim Eung-soo, Vice President of Samsung Electro-Mechanics’ Packaging Solutions Business Division. “We will focus on conquering the high-end substrate market such as servers, AI, and autonomous driving by securing core technologies that meet the needs of the next-generation semiconductor substrate market.”

Reference Links

http://www.wikileaks-kr.org/news/articleView.html?idxno=158441

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