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Samsung Electro-Mechanics to increase CapEx for AI server MLCCs and package substrates amid supply constraints
Monday, January 26, 2026 at 10:47 AM
Samsung Electro-Mechanics plans to expand capital expenditures for AI server and automotive components, focusing on MLCC and high-performance substrates. The company expects a supply shortage of high-value MLCCs and FC-BGA substrates to persist through 2026. Key initiatives include building new overseas production facilities, constructing a glass substrate pilot line, and establishing a joint venture for next-generation packaging technologies with global tech partners.
Context
Samsung Electro-Mechanics is significantly increasing its capital expenditure to address an acute supply shortage of Multi-Layer Ceramic Capacitors (MLCCs) and high-end AI server substrates. With demand from the AI, automotive, and robotics sectors surging, the company anticipates that market tightness will persist throughout 2026. This strategic pivot focuses heavily on expanding capacity for FC-BGA packaging, a critical component for the high-performance computing modules used in modern data centers.
The company is currently weighing the construction of new overseas MLCC factories and further additions to its substrate lines to satisfy persistent order backlogs. Because AI servers require significantly higher component density than traditional hardware, Samsung Electro-Mechanics expects its high-value-added product mix to drive substantial revenue growth. This aggressive expansion signals a proactive move to secure market share as the global semiconductor supply chain enters a prolonged period of capacity constraints driven by generative AI infrastructure.
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