Supply and demand for advanced FC-BGA substrates are tightening as investment in AI data centers expands. Major companies are stepping up efforts to secure long-term supplies by expanding production capacity and providing funding to stabilize their supply chains.
The artificial intelligence (AI) boom has spread from semiconductors to substrates, driving a sharp increase in demand for FC-BGA, a high-performance substrate used in AI data centers. Compared with conventional substrates, FC-BGA requires more layers and finer circuitry, making it difficult to increase supply in a short period.
Nvidia announced on the 21st local time that it would increase production capacity for the substrates used in its products 2.5-fold over the next 3 years. In line with this, Samsung Electro-Mechanics will make Nvidia and Tesla key customers while providing Ibiden with several billion dollars in advance payments to support the expansion of its production facilities. It has also signed a contract with Taiwan's Unimicron.
Samsung Electro-Mechanics is moving ahead with plans to expand AI substrate production capacity at its facilities in Sejong Special Self-Governing City and Busan, while also building a dedicated production line for Tesla. The framework will have Tesla cover part of the funding and secure supply volumes for 5 years from 2029 through 2033.
Ibiden of Japan is strengthening its presence in the AI substrate market, with industry participants estimating that it holds a 70–80% share of the market. Meanwhile, Samsung Electro-Mechanics is strengthening its ability to supply peripheral components, including MLCCs and silicon capacitors, as a package alongside FC-BGA substrates.