Samsung Electro-Mechanics projected that second-half sales of semiconductor package substrates (FC-BGA) will grow sharply on the back of expanded investment in artificial intelligence (AI) data centers by global big tech corporations. It analyzed that increased supply of high-value substrates for AI servers and higher prices will drive results.
Samsung Electro-Mechanics said on the 30th during its second-quarter earnings conference call, "As global big tech corporations expand investment in AI data centers, demand for package substrates for server central processing units (CPUs) and AI accelerators is surging," and "we are receiving requests to join new projects from many global big tech clients."
The company explained that, based on its mass-production experience with server CPUs and AI accelerator substrates, it began supplying substrates for AI data center networks to new global big tech clients starting in the second quarter. It also expected supply volumes to expand in the second half, as key clients are scheduled to begin mass production of next-generation products.
Package substrate prices are also on the rise. Samsung Electro-Mechanics said, "Package substrate prices continue to climb as increasing demand and higher product specifications are compounded by rising raw material costs," adding, "a supplier-favored market is continuing."
The company plans to continue improving results in the second half by expanding supply of high-value new products and through strategic pricing policies.
Samsung Electro-Mechanics said, "We expect second-half FC-BGA business sales to grow sharply through expanded supply of high-value substrates for AI data centers and strategic price responses," adding, "to ensure continued growth in the package substrate business, we will focus on expanding production capacity and strengthening technological competitiveness."