AI Craze Fuels 21 Trillion Won FC-BGA Market; Samsung and LG Compete in Advanced Substrate Technology

Fueled by the AI (Artificial Intelligence) craze, a full-scale pursuit is underway within South Korea's electronic components industry for the FC-BGA market, which is projected to grow to 21 trillion won within four years. FC-BGA plays a crucial role in efficiently connecting complex semiconductor chips and dissipating heat, making it a key component for the AI and high-performance computing (HPC) era. Essential for AI servers and HPC, FC-BGA substrates are gaining attention as a future growth engine for the next-generation semiconductor industry, offering enhanced integration and efficient thermal management in advanced packaging processes.

Market research firms predict the FC-BGA market will reach the 21 trillion won range by 2030, forecasting that the rapid growth of AI semiconductors and server CPUs will drive the miniaturization of substrates and the advancement of their layered structures. Currently, supply shortages are expected to intensify due to increasing manufacturing complexity.

The global FC-BGA market is currently led by Taiwanese and Japanese companies, leveraging their technological prowess and production capabilities. Samsung Electro-Mechanics is planning to invest approximately $1.2 billion (about 1.781 trillion won) in its Vietnam production facility to expand its FC-BGA production capacity for robots, autonomous vehicles, and AI, following previous investments totaling 1.9 trillion won in locations like Vietnam, Busan, and Sejong. LG Innotek is also nurturing its FC-BGA business, centered around its Gumi Plant 4 ('Dream Factory'), and has continued to invest to secure market leadership, including signing an investment agreement worth 1.4 trillion won with Gumi City in 2022 and acquiring facilities. Samsung Electro-Mechanics and LG Innotek are rapidly catching up by expanding production scale, seeking to secure new revenue streams.

As latecomers, a key challenge remains for these companies to narrow the gap with global FC-BGA market leaders such as Japan's Ibiden and Shinko, and Taiwan's Unimicron.