Samsung Electro-Mechanics supplies substrates worth 360.5 billion won to global memory companies

Samsung Electro-Mechanics announced on the 19th that it had signed a long-term supply agreement (LTA) for 'package substrates for memory semiconductors' worth approximately 360.5 billion won with a large global company.

With this contract, the cumulative amount of long-term supply contracts signed by Samsung Electro-Mechanics over the past five months exceeds 4 trillion won.

According to the announcement, the contract amount is 360.48776 billion won, equivalent to 3.2% of last year's consolidated sales. The contract period is one year from January 1 to December 31 of next year.

This contract is for the supply of high-performance package substrates used in memory semiconductors.

The package substrate is a key component that connects the semiconductor chip and the main substrate to transmit electrical signals. High-performance semiconductor substrates require a high level of technology, such as high-speed signal transmission and high-integration and microcircuit implementation.

The other party to the contract was only revealed as a 'global large company', but since it is a contract to supply substrates for memory semiconductors, it is presumed to be one of the global memory companies.

Through this contract, Samsung Electro-Mechanics has secured large-scale orders in the package solution business, following its component business such as multilayer ceramic capacitors (MLCC) and silicon capacitors.

Previously, Samsung Electro-Mechanics signed long-term supply agreements (LTA) worth a total of 3.9 trillion won, focusing on silicon capacitors and MLCCs for artificial intelligence (AI) servers, from last May to early this month.

This package substrate supply contract is the 7th LTA this year, and the cumulative amount of this year's LTA (more than 2.5% of sales based on disclosure), including this, amounts to approximately 4.3 trillion won.

Samsung Electro-Mechanics plans to secure a stable profit base by expanding LTA with major customers and strengthen business competitiveness focusing on high-value products.

An official from Samsung Electro-Mechanics said, "With the growth of the AI ​​and high-performance computing markets, the importance of high-performance package substrates is increasing," and "We plan to continue to increase the competitiveness of the package substrate business by strengthening supply cooperation with customers and establishing a stable supply system."