On July 22, 2024, Samsung Electro-Mechanics (SEMCO) (KOSPI:009150), a leading South Korean electronics company, announced a strategic partnership with U.S.-based semiconductor solutions firm AMD. Through this collaboration, SEMCO will supply high-performance flip-chip ball grid array (FC-BGA) substrates for AMD’s hyperscale data centers. Initial deliveries of these advanced products have already been made to AMD, while Qualcomm also remains a key customer for SEMCO’s high-performance substrate solutions.

As the only South Korean company producing FC-BGA substrates for servers at scale, Samsung Electro-Mechanics aims to solidify its leadership in this fast-growing market. According to market research firm Gartner, the demand for server packaging substrates is expected to grow by an average of 15% annually from 2024 to 2029.

SEMCO’s FC-BGA substrates, designed for AI servers, boast superior performance. Their surface area is six times larger than existing products, and they feature over 20 internal layers—two to three times more than standard substrates. Moreover, innovative manufacturing processes have significantly reduced substrate warping, ensuring high yield rates during chip packaging.

This year, Samsung Electro-Mechanics expects its sales of FC-BGA for servers to double compared to last year. The share of FC-BGA in its total sales is projected to rise from 25% this year to between 30% and 40% in 2025.