Samsung Electro-Mechanics said demand for flip-chip ball grid array (FC-BGA), a semiconductor substrate product, has surpassed its production capacity.
At its first-quarter 2026 earnings conference call on the 30th, Samsung Electro-Mechanics said, "At this point, solid demand for FC-BGA is exceeding our production capacity," adding, "As is known in the market, we are in talks with major customers on prices, reflecting higher raw material costs for T-glass structures, gold, copper, and the supply-demand situation."
Samsung Electro-Mechanics also said, "With the spread of the adoption of agent artificial intelligence (AI), demand for high-performance AI Semiconductors is surging," adding, "Existing customers are requesting increased supply, and demand from new customers, which will begin in the second quarter, is also rising compared with the previous outlook."
On its 2026 annual business outlook, it noted, "Considering external variables, there are still cautious areas, but our view is unchanged for a gradual increase in utilization and full-capacity operations in the second half," adding, "With a surge in demand from major customers, including big tech, compared with early in the year, we expect the FCBGA business to deliver a sharp increase in sales." It added, "While actively responding to demand through close consultations with customers, we will thoroughly manage risks by closely tracking market demand trends."