Samsung Electro-Mechanics plans US$1.85 billion substrate expansion in Vietnam
The expanded Vietnamese facility is targeted to begin operating in June 2030, supplying global demand for semiconductor packaging substrates.
Samsung Electro-Mechanics plans to spend KRW2.51 trillion, or about US$1.85 billion, expanding semiconductor packaging substrate capacity in Vietnam, according to its Vietnamese subsidiary. The project is intended to meet demand for AI servers and high-performance processors, with completion and operations targeted for June 2030.
The Vietnam allocation represents about 37% of a KRW6.78 trillion investment programme covering Vietnam and South Korea. Samsung Electro-Mechanics said the programme would be its biggest investment devoted to one product line.
The expansion centres on flip-chip ball grid array (FCBGA) substrates, which link chips such as CPUs, GPUs and AI accelerators with main circuit boards, carrying electrical signals and power. The company said AI and high-performance computing were increasing demand for bigger substrates with additional layers and denser interconnections.
Under the plan, Vietnam will supply global customers, with a focus on production efficiency and supply stability. The Sejong facility in South Korea will concentrate on technically complex, high-value substrates for AI servers. Sejong will receive KRW4.27 trillion, with investment running from September 2026 to May 2028 and mass production on the additional lines scheduled for September 2028.
Samsung Electro-Mechanics said cooperation with global technology and semiconductor companies underpins the programme. It did not identify customers or disclose the additional capacity or planned hiring in Vietnam.
The Vietnamese subsidiary operates in Yen Binh Industrial Park in Thai Nguyen province. Its FCBGA facility entered large-scale operation in 2024, the company said. Audited accounts showed the subsidiary earned revenue of KRW2.98 trillion (US$2.19 billion) and profit of KRW47.68 billion (US$35.1 million) in 2025.
