As supply shortages of high-specification semiconductor substrates known as FC-BGA (Flip Chip Ball Grid Array) intensify, Samsung Electro-Mechanics has launched a response by operating its production lines at full capacity. With the number of chips mounted on AI (artificial intelligence) semiconductors increasing and substrate areas expanding, manufacturing complexity is rising. Meanwhile, global Big Tech companies are securing high-specification substrates by signing long-term contracts.
According to the electronics industry on the 14th, Samsung Electro-Mechanics has been operating its FC-BGA production lines at full capacity since the second half of this year. The company plans to begin mass production of FC-BGAs required for newly launched AI accelerators and server CPUs by global Big Tech firms. As investments in AI servers rise rapidly, demand for high-specification FC-BGAs is outpacing supply.
FC-BGA, one type of semiconductor substrate, is a packaging substrate with enhanced electrical and thermal properties, primarily used for PCs and CPUs and GPUs (graphics processing units) for servers. CPUs, GPUs, memory, and other components must ultimately be mounted on semiconductor substrates to connect and deliver performance. It is an essential component for AI servers.
In particular, server-grade FC-BGAs are considered among the most technologically challenging products in the semiconductor substrate sector. As server CPUs and GPUs evolve toward mounting multiple semiconductor chips on a single substrate to enhance computational capabilities and data transmission speeds, substrates are becoming larger and more multi-layered. Only a limited number of companies, including Samsung Electro-Mechanics, can mass-produce high-specification server-grade FC-BGAs in the global market.
Server-grade FC-BGAs have substrate areas more than four times larger and over 20 layers—more than double that of products for general PCs. As substrates grow larger and layer counts increase, it becomes increasingly difficult to suppress warping while ensuring product reliability and production yields. This field is evaluated as having high entry barriers for latecomers due to the need not only for advanced manufacturing technology but also for large-scale investments in specialized equipment.
The push for higher performance in AI accelerators is further raising these technological barriers. The substrate size of Blackwell, released by NVIDIA in 2024, was 81.5mm×74.8mm, but the next-generation product, Rubin Ultra, measures 153mm×77.5mm, with an area approximately twice as large. As substrate areas expand, the likelihood of warping due to weight and heat increases, necessitating advanced manufacturing technologies capable of controlling such issues.
With high-specification FC-BGA supply constrained, global Big Tech companies including NVIDIA have begun securing stable volumes. Similar to memory semiconductors, a model where customers sign long-term supply contracts and pay advance payments to secure production capacity is also spreading. Advance payments are used for expanding production lines, among other purposes. Currently, most of the FC-BGAs produced by Samsung Electro-Mechanics already have designated customers.
The expansion of the ASIC (application-specific integrated circuit) market is further fueling these trends. As Big Tech companies expand their development of proprietary AI accelerators, demand for customized FC-BGAs tailored to chip structures and specifications is also rising. For Samsung Electro-Mechanics, this presents an opportunity to secure long-term customers for high-value-added products while boosting average selling prices (ASP) and sales volumes.
To meet growing demand, Samsung Electro-Mechanics has launched efforts to expand its high-performance semiconductor substrate production capacity centered on its Busan and Sejong facilities. However, since establishing new equipment and obtaining customer certifications require time, significant expansion effects are expected to materialize from 2028 onward.
As Big Tech investments in AI servers continue to expand, the growth trend of the FC-BGA market is also expected to persist. According to Intel Market Research, the global FC-BGA market size is projected to grow from $5.95 billion this year to $12.12 billion by 2034.
An industry official stated, "Customized substrates inevitably carry higher unit prices," and added, "Recently, as substrate areas for plastic materials used in FC-BGAs approach their limits, interest in glass substrates is increasing."
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