Samsung Electro-Mechanics Signs 360.5 Billion Won Chip Substrate Supply Deal

What happened

Samsung Electro-Mechanics said in a regulatory filing on Oct. 19 that it signed a 360.5 billion won contract to supply package substrates for memory semiconductors to a major global company, with the contract running from Jan. 1 to Dec. 31, 2027 and representing 3.2% of the company's consolidated revenue last year. This is the company's first disclosed long-term agreement (LTA) for package substrates, bringing its total disclosed LTAs this year to seven; contracts previously concentrated in the components business involving silicon capacitors (Si-Caps), MLCCs and inductors have now expanded to the Package Solution division, with cumulative contract value of approximately 4.3 trillion won. According to the source, growing demand for high-value products such as GPU and CPU substrates for AI servers and heterogeneous integration chiplets is believed to have led to the LTA. Separately, the company last month disclosed plans to invest 4.27 trillion won in its FC-BGA production facilities in Sejong and 2.51 trillion won in package substrate manufacturing equipment in Vietnam; including building expansion in Vietnam, total spending is expected to exceed 8 trillion won. The company previously announced plans to invest 8 trillion won at its Sejong facility and 15 trillion won at its Busan facility by 2040 as part of a government-led megaproject.

Impact and signal

Affected components and suppliers

Source and time

Source: The Elec · 10/19/2026 · View original source