Korean Chip Substrate Makers Expand Capacity Amid AI Demand Surge

Samsung Electro-Mechanics and LG Innotek have ramped up production to full capacity in response to soaring demand for semiconductor substrates driven by AI technology. Forecasts indicate that Samsung's operating profit for Q1 2026 will reach approximately 285.4 billion won, up 42.3% year-on-year, while LG's profit is expected to increase by 39.9% to 175 billion won.

Both companies' production lines are currently operating at full capacity, with utilization rates rising significantly from the previous year. To address future demand, Samsung is reviewing expansion of its FC-BGA production lines, while LG plans to secure new facilities to double its capacity by 2028 and expand into the server market by 2027. This trend may signal a tightening supply in the semiconductor substrate market as demand escalates.