Samsung Electro-Mechanics (009150) said on the 19th that it has signed a 360.5 billion won ($251 million) contract to supply package substrates for memory chips to a global big tech company. The company has secured more than 4 trillion won in orders over the past five months, winning a string of long-term agreements on the back of growth in the artificial intelligence chip market.
In a regulatory filing on the 19th, Samsung Electro-Mechanics said the contract with the large global customer is equivalent to 3.2% of its consolidated revenue last year. The counterparty was not disclosed under a confidentiality agreement. The supply period runs for one year, from Jan. 1 to Dec. 31 next year.
Package substrates are core components that connect semiconductor chips to other parts in electronic devices, allowing electrical signals to pass between them. Their importance has grown as demand rises for high-performance memory such as DRAM for AI servers and high-bandwidth memory. The faster memory processes data, the more quickly and accurately electrical signals must travel between the chip and external circuits. That requires technology to pack fine circuits densely inside the substrate and stack them in multiple layers while minimizing signal loss.
Samsung Electro-Mechanics is targeting the high-performance package substrate market with technologies for forming fine circuits and for limiting warpage in substrates. The latest contract expands the range of products covered by its long-term supply agreements from electronic components to semiconductor substrates.
Samsung Electro-Mechanics has signed seven long-term supply contracts since May, based on regulatory filings, with a combined value of 4.3 trillion won. "The importance of high-performance package substrates is growing further as the AI and high-performance computing markets expand," a company official said. "We will strengthen supply cooperation with customers and build a stable supply system to enhance our business competitiveness."