Samsung Electro-Mechanics Signs 360.5 Billion Won LTA for Memory Substrates to Secure AI Hardware Supply

South Korean electronic components manufacturer Samsung Electro-Mechanics announced on October 19 that it has signed a long-term supply agreement (LTA) worth 360.5 billion won with a large global memory semiconductor company. Under the deal, Samsung Electro-Mechanics will supply high-performance package substrates for next-generation memory semiconductors from January 1 to December 31, 2027.

Package substrates are critical components connecting semiconductor chips to mainboards, facilitating electrical signal transmission. With the rapid proliferation of generative artificial intelligence (AI) and high-performance computing (HPC), demand for high-performance substrates capable of supporting higher bandwidth and lower latency has surged. Samsung Electro-Mechanics stated that winning this contract was due to its competitiveness in difficult process technologies such as high-layer, ultra-thin designs, large-area fine circuit implementation, and mass production stability.

This new agreement expands Samsung Electro-Mechanics' portfolio of long-term supply contracts. Since May of this year, the company has successively signed LTAs covering component divisions including silicon capacitors, multilayer ceramic capacitors (MLCCs) for AI servers, and inductors. The scope of its long-term supply agreements has now extended to the package solutions division. According to statistics, since May, Samsung Electro-Mechanics has disclosed seven large LTAs accounting for more than 2.5% of sales, with a cumulative contract value of approximately 4.3 trillion won.

The company stated that by building a stable supply system and strengthening cooperation with customers, it aims to solidify a stable revenue base unaffected by economic fluctuations and further enhance its business competitiveness in the package substrate sector.