South Korea’s Samsung Electro-Mechanics will invest KRW6.78 trillion won ($4.9 billion) to expand production of chip-packaging substrates in South Korea and Vietnam, its biggest bet yet on components for AI processors.

In two filings with the Korean Exchange (KRX) dated September 28, Samsung Electro-Mechanics said the investment features KRW4.27 billion ($3.1 billion) in South Korea and KRW2.51 billion in Vietnam.

The larger part of KRW4.27 trillion will build new lines at its Sejong plant in central South Korea to make flip-chip ball grid array (FC-BGA) substrates. The items serve high-density boards used in AI accelerators and server processors.

The company called it its biggest single-product investment, equal to about 44 percent of its consolidated equity at the end of 2025. Construction runs to May 2028, with mass production due to start that September.

Separately, its Vietnamese subsidiary will invest KRW2.51 trillion won to expand a package-substrate plant in Vietnam by the end of April 2028. Samsung Electro-Mechanics already produces package substrates in Vietnam, part of a build-up there since 2021.

Both investments were approved by the board on September 28. The company said the expansion would let it meet global customers’ demand for larger supply over the medium and long term.

Samsung Electro-Mechanics, an affiliate of Samsung Electronics listed in Seoul, makes electronic components including multilayer ceramic capacitors, camera modules, and semiconductor package substrates.

Samsung posts record $205.6B revenue in H1/2026, semiconductors deliver $96.2B or 97% of operating profit