en.Wedoany.com Reported - On July 3, Samsung Electro-Mechanics announced a mid- to long-term equipment investment plan totaling approximately 23 trillion won by 2040, focusing on expanding production capacity for AI data center server packaging substrates and high-value-added multilayer ceramic capacitors (MLCCs). The plan covers two major production bases in Busan and Sejong, directly targeting the AI server hardware supply chain.
According to the plan, Samsung Electro-Mechanics will invest about 15 trillion won to build a mother factory and R&D center for high-performance packaging substrates and high-value-added MLCCs in Busan. The Busan project will handle high-end product development, core process validation, and subsequent production line expansion, serving the needs of AI servers, data centers, network equipment, and high-performance computing platforms. The company also plans to invest an additional 8 trillion won in the Sejong factory to expand AI server substrate equipment. The Sejong factory itself is a key base for Samsung Electro-Mechanics' packaging substrate business, and the new investment will further enhance its mass production capacity and equipment configuration for AI servers.
AI server substrates are critical components that enable advanced chips to enter server systems. GPUs, AI ASICs, CPUs, HBM, and high-speed network chips require high-performance packaging substrates for signal transmission, power distribution, and structural support. The number of substrate layers, circuit precision, material stability, and thermal management capabilities all affect server performance.
MLCCs are essential basic components in AI servers, data center power supplies, motherboards, accelerator cards, and network equipment. AI servers have high power consumption and large instantaneous current fluctuations, requiring greater power stability and high-reliability capacitors. High-value-added MLCCs must withstand high temperatures, high voltages, high frequencies, and prolonged operation, and are widely used in server motherboards, power modules, GPU boards, switches, and storage devices. By including both packaging substrates and MLCCs in the same investment plan, Samsung Electro-Mechanics aims to strengthen its supply capabilities for both "chip-carrying components" and "power stabilization components" for AI servers. As global cloud providers and major tech companies continue to expand AI data centers, both product categories will enter higher-specification, larger-volume procurement cycles.
This 23 trillion won investment will also expand South Korea's domestic electronic component manufacturing capabilities. High-end packaging substrate production requires precision circuit processing, build-up materials, laser drilling, electroplating, inspection equipment, and yield control systems; MLCC production relies on ceramic powder, thin-layer forming, sintering, end electrodes, electroplating, and high-reliability testing. After Samsung Electro-Mechanics' additional investments in Busan and Sejong, demand for related equipment, materials, inspection, automation, and factory support will increase simultaneously. AI hardware competition is extending from chips themselves to substrates, capacitors, power supplies, heat dissipation, and packaging materials, and the expansion pace of core component manufacturers will directly affect server system delivery capabilities.
Currently disclosed information shows that Samsung Electro-Mechanics' investment cycle will continue until 2040, representing a long-term capacity and R&D system building plan. Subsequent project progress will focus on the construction of the Busan mother factory, equipment expansion in Sejong, AI server substrate mass production capabilities, high-value-added MLCC product lines, and customer certification timelines.
