Samsung Electro-Mechanics, a subsidiary of Samsung Electronics, is aiming to become a leader in the chip package substrate market. They are building a new plant in Sejong, which will be completed by May next year. The site has been operational since 1991 and currently serves as Samsung’s production base for chip package substrates, particularly for mobile devices.
A chip package substrate is used to connect chips and the main board, transmitting electrical signals and protecting the chips. Samsung’s advanced embedding technology allows them to embed passive components inside the board, reducing power loss and enabling high-speed signal transmission. They are betting on their package substrate business for next-generation chips, despite its small contribution to overall profits.
According to their semi-annual report, the package unit’s sales accounted for 19.7 percent of the company’s total. However, the semiconductor market is expected to reach $752 billion in 2027, and the chip package substrate market is projected to grow at a rate of 10 percent annually. Samsung plans to focus on producing substrates for mobile devices and expand into the electric vehicle market.
Overall, Samsung is investing in the chip package substrate market due to its potential for growth and the increasing demand for high-performance semiconductors.
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