Samsung Electro-Mechanics said on Monday that it will spend 300 billion won to expand its flip-chip ball grid array (FC-BGA) factory at Busan.
The new spending plan comes atop the 1.3 trillion won investment the company announced earlier in December to build an FC-BGA facility at its plant in Vietnam.
Samsung Electro-Mechanics’ facility in Busan, South Korea currently manufactures FC-BGA and multi-layer ceramic capacitors.
The company said the additional spending on FC-BGA was being made to meet the high demand for chip packages.
It expects supply and demand to be tight for package boards up to 2026, the company said.
Samsung Electro-Mechanics will build a foundation to enter the high-end package board market, it added.
Though the company didn’t specify what it meant by high-end, it is likely referring to FC-BGA for server chips.
The South Korean firm had so far only manufactured FC-BGA for PC chips.
Its Busan facility will likely focus on server FC-BGA while its Vietnam plant will manufacture PC and network FC-BGAs.