VIETNAM – Samsung Electro-Mechanics (SEMCO) is making a bold move to dominate the booming Artificial Intelligence (AI) semiconductor market. According to industry sources on April 12, the company has finalized plans to establish a large-scale production line for "MLCC (Multi-Layer Ceramic Capacitor) Embedded Substrates" at its Vietnam manufacturing facility.
A Strategic Leap for AI Infrastructure
The MLCC embedded substrate is a cutting-edge technology that integrates passive components directly inside the substrate rather than mounting them on the surface. By minimizing the physical distance between the chip and the capacitor, this architecture significantly reduces signal loss and enhances power efficiency—critical factors for high-performance AI chips.
Samsung Electro-Mechanics, which previously supplied these substrates in limited quantities, is now shifting toward mass production to meet surging global demand. Major AI chipmakers and Big Tech firms have reportedly been in talks with SEMCO to secure a stable supply of these advanced components.
Massive Investment and Supply Chain Expansion
The investment is expected to reach hundreds of billions of won over the next two years. This capital will be directed toward purchasing specialized equipment—such as advanced machinery for creating "cavities" (internal pockets) for MLCCs—and building a robust local ecosystem with South Korean partners operating in Vietnam.
"Samsung is preparing a comprehensive supply chain to lead the market," said an industry insider. "This expansion focuses on creating a competitive edge in a niche where few rivals currently exist."
Beyond MLCC: The Future of Integration
Looking ahead, Samsung Electro-Mechanics aims to integrate not only MLCCs but also Silicon Capacitors into its substrates. Silicon capacitors offer up to 100 times lower resistance than ceramic-based MLCCs, providing even greater stability in high-voltage and high-temperature environments.
As the AI era demands unprecedented processing power, SEMCO’s move to localize and scale its embedded substrate production in Vietnam positions the company as a key architect in the global semiconductor landscape. The first equipment purchase orders (PO) are expected to be issued as early as this month, signaling the start of a new chapter in the company's AI-centric growth strategy.
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