Samsung Electro-Mechanics to establish FC-BGA line for US chip makers

Samsung Electro-Mechanics will manufacture a production line of flip-chip FC-BGA package substrates for chips for an American company, reports Korean media TheElec. However, the location of the production line is not in the United States. At present, mainstream CPUs and GPUs use this packaging form.

The manufactured silicon chips are packaged on a substrate made of glass fiber composite material. The bottom of the substrate is of BGA specifications and can be soldered on the motherboard after tin plating.

The FC-BGA substrate production line has a total investment of 1.1 trillion won, which is jointly funded by Samsung Electro-Mechanics and American chip makers. The two companies reached this cooperation in September 2021, but reports did not disclose the name of the American chip company.

Join SammyFans on Telegram

Previously, Samsung Electro-Mechanics supplied Intel FC-BGA substrates for the production of civilian processors, but its supply of server CPU products is very small. Report revealed that Japanese companies Ibiden and Shinko Denki previously supplied most of the FC-BGA substrates for Intel server CPUs.

Samsung Electro-Mechanics’ new production line in the United States will mainly produce substrates for server CPUs in the future to enhance the company’s influence in the FC-BGA market. Notably, the Korean firm’s current annual sales of FC-BGA substrates are about 500 billion won.

The same source disclosed that once the new production line starts to operate, it is expected that future sales will increase to three times the current amount. This new production line is expected to be built in a factory in Vietnam, where Samsung Electro-Mechanics’ RFPCB flexible circuit board manufacturing equipment will be dismantled because the company plans to sell its RFPCB business.