Samsung Electro-Mechanics plans to invest 15 trillion won to expand production capacity for MLCCs and FC-BGA substrates.
According to South Korean media reports, Samsung Electro-Mechanics plans to invest approximately 15 trillion won over the next few years to build new facilities and expand existing production sites in Busan and Sejong. The goal is to boost the output of multi-layer ceramic capacitors (MLCCs) and flip-chip ball grid array (FC-BGA) substrates—key components for artificial intelligence (AI) semiconductors. The company’s strategy involves using advance payments from long-term supply agreements (LTAs) signed with major global tech firms to fund this significant capacity expansion, thereby meeting the growing market demand for AI semiconductors.
On the 30th, Samsung Electro-Mechanics announced plans to significantly boost production capacity for its core products, such as MLCCs and FC-BGAs. The company intends to secure a new factory site—comparable in scale to its existing facilities—near the Myeongji-Noksan National Industrial Complex in Busan. Candidate locations include two or three factory sites currently up for sale within the Myeongji-Noksan complex, as well as the Eco Delta City development in Busan’s Gangseo District.
Large-scale expansion is also planned for Sejong, a key production hub for FC-BGAs. Samsung Electro-Mechanics has secured a plot of land spanning approximately 50,000 pyeong (roughly 165,000 square meters)—an area equivalent to 24 soccer fields—within the Myeonghak Industrial Complex. Aligning with the government's "three major flagship projects," the company plans to construct additional production facilities, focusing on the site's undeveloped areas.
Samsung Electro-Mechanics is accelerating large-scale investment following an announcement by its largest shareholder, Samsung Electronics, to invest 2,030 trillion won—bringing the completion dates for semiconductor wafer fabs in Pyeongtaek and Yongin forward by seven years—and to invest an additional 400 trillion won to build two new wafer fabs in Gwangju. Meanwhile, SK Hynix has also decided to invest 600 trillion won by 2033 to complete the Yongin Semiconductor Cluster. Demand for the substrates and MLCCs (Multi-Layer Ceramic Capacitors) required for the AI memory chips produced by both companies is expected to grow exponentially.
Samsung Electro-Mechanics is actively securing large-scale supply contracts with major global tech companies; notably, it recently signed a 454-billion-won agreement to supply MLCCs for AI servers to a major U.S. tech firm. Prior to this, in May, the company signed a 1.557-trillion-won deal with another major tech company to supply "silicon capacitors"—often referred to as "next-generation MLCCs"—and also entered into long-term FC-BGA supply contracts with Nvidia and Qualcomm.
Aibang has established an MLCC industry discussion group; you are welcome to apply to join. We invite you to join the MLCC (Multi-Layer Ceramic Capacitor) industry exchange group.
Recommended Event 1: [Concurrent Exhibition Forum] The 6th MLCC Industry Forum (August 27 · Shenzhen)
(Agenda updated as of July 2)
No. | Proposed Topic | Invited Guest/Speaker |
1 | Additives for MLCC Applications | Dr. Hiroshi Yonehara, Head of R&D, BYK Additives (Shanghai) Co., Ltd. |
2 | Application of Nano-Coulter Technology in MLCC Powder Characterization | Ma Xiaoting, Technical Director, Ruixin Zhizao (Shenzhen) Technology Co., Ltd. |
3 | Insights on Avoiding Key Pitfalls in High-Layer MLCC R&D | Fu Jionggui, General Manager, Guangzhou Shengli New Materials Co., Ltd. |
4 | Topic To Be Confirmed | Hefei Hengli Equipment Co., Ltd. |
5 | Development Roadmap for MLCC Miniaturization and High Capacitance | Invited: Guangdong Fenghua Advanced Technology Holding Co., Ltd. / Dalian Dalicap Technology Co., Ltd. / Shenzhen Sunway Communication Co., Ltd. |
6 | Research on Controllable Preparation and High-Entropy Doping Modification of Nano-Barium Titanate Driven by High-End Electronic Material Demands | Professor Shi Liyi, Shanghai University |
7 | Topic To Be Confirmed | Dr. Qi Shishun, Deputy Dean of Hongyuan Innovation Research Institute, Beijing Yuanliu Hongyuan Electronic Technology Co., Ltd. |
8 | Topic To Be Confirmed | Dalian Overseas Huasheng |
9 | Ceramic Material Technology for PME/BME, Pulse Energy Storage, and Microwave MLCCs | Professor Tang Bin, University of Electronic Science and Technology of China (UESTC) |
10 | Ultra-Fine Nano Barium Titanate Powder Materials and Dispersion Evaluation Technology | Dr. Lu Wei, Technical Director, Huizhou Baoshunmei Technology Co., Ltd. / Researcher, Gusu Laboratory of Materials Science |
11 | Topic To Be Confirmed | Shenzhen Jinminjiang Intelligent Equipment Co., Ltd. |
12 | Topic To Be Confirmed | Membrane Solutions (Mbr) |
13 | Topic To Be Confirmed | Jiaxing Jingchi Special Ceramics Co., Ltd. |
14 | Topic To Be Confirmed | Chongqing University |
15 | Micro and Ultra-Thin MLCCs Drive Advancements in AI Chips and Advanced Packaging Technology | Yuyang Technology |
More topics are being added continuously... | ||
We are currently soliciting additional topics; recommendations or self-proposed topics are welcome. For speaking or sponsorship inquiries, please contact Ms. Li at 18124643204 (also her WeChat ID).
Recommended Event 2: Aibang’s 8th Precision Ceramics Industry Chain Exhibition [August 26–28, 2026 | Hall 7, Shenzhen World Exhibition & Convention Center (Bao'an New Venue)]
Booth Booking:
Ms. Long: 18318676293 (also WeChat)
Email: ab036@aibang.com