Samsung Electro-Mechanics will supply packaging substrates to U.S. chip designer AMD for hyperscale data center purposes.

These substrates will be manufactured at the company's facilities in Busan and Vietnam.

The Korean electronic components company, affiliated with Samsung Electronics, announced on July 22nd that it will be supplying its Flip Chip Ball Grid Array (FCBGA) substrates to AMD. These substrates aim to provide larger surface areas and higher layer counts to offer denser interconnectivity among chips on the substrate for hyperscale data centers.

Substrates for data centers require a surface area that is 10 times larger than that for computers and layer counts three times higher. The complex manufacturing process of FCBGA substrates has been addressed by Samsung Electro-Mechanics through the deployment of real-time data collection and modeling, enabling predictive manufacturing models for higher yields.

The company has invested 1.9 trillion won ($1.4 billion) in FCBGA.

“We are honored to be a strategic partner with AMD, a global leader in high-performance computing and AI semiconductor solutions,” said Kim Won-taek, executive vice president of the Strategic Marketing Center at Samsung Electro-Mechanics.

“Our continued investment in advanced substrate solutions will provide key value to customers like AMD, addressing the evolving demands of data centers and other compute-intensive applications, ranging from AI to automotive systems.”

The substrate market for chips is expected to post an average annual growth of 7 percent from 2024 to 2028, reaching 20 trillion won by 2028, according to data from electronics industry consulting firm Prismark.

Editor：Lulu