Samsung Electro-Mechanics announced on the 19th that it has signed a long-term supply agreement (LTA) worth 360.5 billion won for memory semiconductor package substrates with a global major customer. Under this contract, Samsung Electro-Mechanics will supply package substrates for memory semiconductors for one year starting January 1 of next year.
Package substrates are core components that connect semiconductor chips to mainboards, transmit electrical signals, and support the stable operation of semiconductors. In particular, package substrates for high-performance semiconductors require advanced technological capabilities, such as high-density integration and fine circuit implementation, as they must underpin large-capacity data processing and high-speed signal transmission.
Recently, with the spread of generative AI (artificial intelligence) and increased demand for high-performance computing (HPC), the next-generation memory semiconductor market, including HBM (High Bandwidth Memory) and DRAM for high-performance servers, is growing rapidly. Consequently, the importance of advanced process technologies, such as multi-layering, fine circuit implementation, and ultra-thin design, is increasing for package substrates used in memory semiconductors.
Samsung Electro-Mechanics is evaluated as having secured technological competitiveness and stable Yangsan capabilities in the package substrate field, based on technologies such as large-area fine circuit implementation and substrate warpage control.
With this contract, Samsung Electro-Mechanics has expanded long-term supply agreements across its entire core business portfolio. Following consecutive major long-term supply contracts in its component business—such as silicon capacitors, MLCCs (Multilayer Ceramic Capacitors) for AI servers, and inductors—since May, the company has also secured large-scale orders in its package solution business.
Among the long-term supply agreements signed by Samsung Electro-Mechanics since May this year, the number of contracts meeting the public disclosure threshold of 2.5% or more of revenue has increased to a total of seven. The cumulative contract value reaches approximately 4.3 trillion won. Samsung Electro-Mechanics is pursuing a strategy to strengthen cooperation with major customers and expand long-term supply agreements to reduce earnings volatility caused by fluctuations in the semiconductor industry, while building a stable, high-profit business structure.
A Samsung Electro-Mechanics official stated, "The importance of high-performance package substrates is growing further due to the expansion of the AI and high-performance computing markets," adding, "We plan to continuously enhance the competitiveness of our package substrate business by strengthening supply cooperation with customers and building a stable supply system."
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