Samsung Electro-Mechanics has agreed to supply memory-chip package substrates under a 360.5 billion won ($271 million) deal for 2027, extending its long-term contract push, The Korea Herald reported Monday.
The buyer remains unnamed. Samsung Electro-Mechanics described it as a major global customer, and the company said the one-year agreement brings package substrates into its long-term supply business, the newspaper reported.
A package substrate sits between a semiconductor chip and its circuit board, carrying electrical signals along the connection. Faster, more densely integrated memory chips put greater demands on the substrate: designs need finer circuitry and additional layers while becoming thinner. Manufacturers also face tighter requirements for controlling warpage. Together, those demands make substrate production a precision process involving signal routing, thin designs and shape control.
Samsung Electro-Mechanics credited its ability to form fine patterns across large areas and manage substrate warpage with helping it win the order, according to the report.
The company linked demand for high-performance substrates to growth in artificial intelligence and high-performance computing. A Samsung Electro-Mechanics official told The Korea Herald that expansion in those markets is increasing the importance of advanced substrates. The official said the company plans to strengthen customer cooperation and increase supply capacity.
The agreement adds to a series of long-term supply contracts disclosed since May. Samsung Electro-Mechanics has reported seven such contracts above the regulatory disclosure threshold of 2.5% of annual sales, worth about 4.3 trillion won combined, The Korea Herald reported. Earlier agreements covered silicon capacitors, MLCCs and inductors.
The company has sought longer customer commitments in several business lines to soften the impact of industry cycles and make future earnings easier to gauge, the newspaper reported. Substrate deliveries are scheduled to run from Jan. 1 through Dec. 31, 2027.
