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Samsung Electro-Mechanics Signs 360.5 Billion Won Long-Term Supply Deal for Memory Chip Package Substrates

Chips3 min read

Samsung Electro-Mechanics (Samsung Electro-Mechanics, a Samsung Group parts maker) signed a long-term supply deal worth 360.5 billion won for chip packaging boards used in memory chips. The deal runs for one year, from January 2027 to December 2027.

What happened

Samsung Electro-Mechanics said it signed a long-term supply agreement (LTA) with a large global company. The deal is for 'package substrates' used in memory chips. The company will supply high-performance package substrates to a major global customer for one year. The customer is not named in the article.

Key numbers

  • Deal value: 360.5 billion won (about 3605억 원 in the article)
  • Contract period: January 1, 2027 to December 31, 2027
  • Total disclosed long-term supply deals since May this year: 7
  • Total value of those deals so far: 4.3 trillion won

What is a package substrate?

A package substrate is a small board that connects a chip to the main circuit board. It carries electrical signals and helps the chip work steadily. High-performance chips need very fine circuits and must handle large amounts of data at high speed, so these boards are hard to make. Demand is rising because of generative AI and high-performance computing, which need advanced memory such as HBM (high-bandwidth memory).

Why it matters

This deal shows that Samsung Electro-Mechanics is winning more long-term orders in its packaging business. The company says customers trust its fine-circuit technology, its ability to control warpage (bending of the board when it heats up), and its stable mass production. After parts such as silicon capacitors, AI server MLCCs, and inductors, the packaging business is now also showing results.

What to watch

  • Whether the company signs more long-term deals in the coming months
  • How much the packaging business adds to company sales as these contracts start
  • Whether demand for AI-related memory keeps growing and supports more orders

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