Samsung Electro-Mechanics is said to have raised prices for flip chip ball grid array (FC-BGA), a high value-added semiconductor substrate. FC-BGA is a core substrate used in artificial intelligence (AI) servers and high-performance computing, and demand has surged recently, leading to continued supply shortages.
According to the industry on the 31st, Samsung Electro-Mechanics recently raised selling prices for some FC-BGA product lines in response to rising materials and supplies expense. Samsung Electro-Mechanics President Chang Duck-hyun said at a recent shareholders meeting, "Demand for FC-BGA for servers and data centers is more than 50% higher than production capacity," and "We are making supplementary investments and also expanding some plants."
Mirae Asset Securities raised its estimate for Samsung Electro-Mechanics' average selling price (ASP) of FC-BGA by 10% in a report the same day and said there is room for additional increases. Park Jun-seo, a Mirae Asset Securities researcher, said, "In a demand environment where additional capacity expansion is inevitable, FC-BGA has been selling out since the second half of last year," and "Negotiations for additional price increases also appear to be proceeding in a favorable direction."
Market research firm Prismark projected that the FC-BGA market will post an average annual growth rate of more than 15% through 2030.