SAMSUNG ELECTRO-MECHANICS

In March, Samsung Electro-Mechanics decided to invest approximately KRW 300 billion to expand the semiconductor package substrate plant and build production facilities at its Busan plant. Including the plan to invest about KRW 1.3 trillion in production facilities at the Vietnamese subsidiary, the total investment amounts to KRW 1.6 trillion. This investment decision comes as the surge in demand for semiconductors leads to the sharp increase in demand for semiconductor package substrates, which are essential for chip manufacturing.
 

The substrate plays the role of physically mounting and electrically connecting components. If a substrate is a skeleton, the printed circuits on the substrate are likened to nerves and blood vessels that transmit necessary information. A substrate consists of the circuit through which electrical signals are connected and the insulator through which electrical signals cannot be transmitted. There are various types of substrates depending on function and usage. Substrates are largely divided into the mainboard that connects all parts, the flexible substrate that connects the boards, and the semiconductor package substrate that connects semiconductors.

The semiconductor package substrate transmits electrical signals between the semiconductor and the mainboard and protects the semiconductor from external impact. It is difficult to directly mount a chip on the mainboard due to the miniaturization of the circuit and changes according to the temperature. The semiconductor package substrate serves as a bridge connecting the semiconductor and the mainboard. In order for chips to perform their roles successfully, the semiconductor package substrate must also precisely have the characteristics required as a carrier.
 
In recent years, multi-package products in which multiple semiconductors are placed on a package substrate have been developed to enhance the performance of a single chip as well as the overall package. The operation of several chips means a more complex circuit pattern and an increased area and number of layers for the substrate. Due to this technological advancement, the manufacturing of semiconductor package substrates is becoming more difficult, and only a small number of companies can make them, resulting in continued supply shortages.
 
Samsung Electro-Mechanics is focusing on System on a Substrate (SoS), the next-generation semiconductor package substrate technology. SoS is a semiconductor package substrate made with the ultra-miniaturization process that can achieve an integrated system by arranging two or more chips on a substrate. System on a Chip (SoC) generally refers to an integrated circuit that combines semiconductors such as CPU and GPU into a single chip, and has challenges such as limitations in miniaturizing different semiconductors and utilizing the space. SoS is a technology that improves semiconductor performance by placing multiple chips on a single substrate and connecting them with intricate rewiring technology. Chang Duckhyun, CEO of Samsung Electro-Mechanics, said, "Semiconductor package substrates are facing a new paradigm. Samsung Electro-Mechanics will lead the era of SoS, which integrates all components into the substrate."

In the future, semiconductor package substrates are expected to grow mainly in the AI, and automotive sectors. In particular, Samsung Electro-Mechanics is focusing on Arm-based CPUs, which have many advantages in power efficiency and parallel operation, as well as high-performance servers, network CPUs, and GPUs driven by the growth of the cloud market. The company has already started supplying semiconductor package substrates for networks, and plans to begin the mass-production of semiconductor package substrates for servers in the second half of the year.