Samsung Electro-Mechanics said Monday it has signed a 360.5 billion won ($271 million) contract to supply high-performance package substrates for memory chips to a major global customer, expanding its long-term supply agreements into its substrate business.
Under the one-year deal, the company will supply the substrates from Jan. 1 through Dec. 31, 2027. Samsung Electro-Mechanics did not identify the customer.
The agreement comes as demand for advanced memory components rises alongside the rapid expansion of artificial intelligence and high-performance computing infrastructure.
“Demand for high-performance package substrates is becoming increasingly important as the AI and high-performance computing markets grow,” a Samsung Electro-Mechanics official said, adding that the company plans to strengthen cooperation with customers and expand its supply capacity.
Package substrates connect semiconductor chips to main circuit boards, carrying electrical signals between them. As memory chips become faster and more densely integrated, substrates require increasingly fine circuitry, more layers and thinner designs, as well as tighter control of warpage.
Samsung Electro-Mechanics said its capabilities in large-area fine-pattern processing and warpage control helped secure the order.
The latest deal expands Samsung Electro-Mechanics’ long-term supply agreements into its package substrate business, following a series of contracts this year for silicon capacitors, MLCCs and inductors.
Since May, Samsung Electro-Mechanics has disclosed seven long-term supply contracts exceeding the regulatory disclosure threshold of 2.5 percent of annual sales, with a combined value of about 4.3 trillion won.
The company has been seeking to increase the share of longer-term customer contracts across its businesses to reduce exposure to industry cycles and improve earnings visibility.
herim@heraldcorp.com