Samsung Electro-Mechanics to supply AMD with packaging substrate

Samsung Electro-Mechanics will supply packaging substrate to U.S. chip designer AMD for hyperscale data center purposes.

Samsung Electro-Mechanics' manufacturing facility in Vietnam [SAMSUNG ELECTRO-MECHANICS]

Samsung Electro-Mechanics will supply packaging substrate to U.S. chip designer AMD for hyperscale data center purposes.

It will be made at the company's manufacturing lines in Busan and Vietnam.

The Korean electronic components company affiliated with Samsung Electronics said Monday it will be supplying its Flip Chip Ball Grid Array (FCBGA) substrates to AMD to work on gaining larger surface areas and higher layer counts to provide denser interconnectivity among chips on the substrate for hyperscale data centers.

Substrate for data centers requires a surface area that is 10 times larger than that for computers and layer counts three times higher. The nature of FCBGA substrates requires a more complex manufacturing process, which Samsung Electro-Mechanics says it has addressed through the deployment of real-time data collection and modeling that enables predictive manufacturing models for higher yields.

The company had invested 1.9 trillion won ($1.4 billion) in FCBGA.

“We are honored to be a strategic partner with AMD, a global leader in high-performance computing and AI semiconductor solutions,” said Kim Won-taek, executive vice president of the Strategic Marketing Center at Samsung Electro-Mechanics.

“Our continued investment in advanced substrate solutions will provide key value to customers like AMD, addressing the evolving demands of data centers and other compute-intensive applications ranging from AI to automotive systems.”

The substrate market for chips is expected to post average annual growth of 7 percent from 2024 to 2028, reaching 20 trillion won by 2028, according to data from electronics industry consulting firm Prismark.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]