Sejong Plant Expansion to Build AI Server Substrate Line

The Samsung Electro-Mechanics plant located in the Myeonghak General Industrial Complex in Sejong is preparing a large-scale expansion. At the core of this expansion is the construction of a new production line for package substrates used in AI servers, commonly known as substrates. Substrates are key components that connect semiconductor chips to motherboards, and they are widely used not only in AI servers handling high-performance computation but also in general servers, personal computers, and electric vehicles. The rapid global buildout of AI data centers has been cited as the background for this expansion decision, as demand for high-spec substrates has grown quickly. Existing production capacity has become insufficient to handle the growing order volume, prompting the push to expand the Sejong plant's lines. The Sejong plant has long been considered one of Samsung Electro-Mechanics' key production bases, and this expansion would further increase the country's substrate production capacity.

Investment Scale and Announcement Schedule

The investment amount is understood to significantly exceed one trillion won. However, detailed plans including the specific investment scale and expansion schedule are set to be disclosed through an official announcement on July 2. A Sejong city official stated that if this investment goes through, it would be the largest single-project investment since the city's launch in 2012. The city explained that the investment is expected to have a substantial ripple effect on the local economy. Ahead of the official announcement, attention in the Sejong region has focused on the specific investment scale and its employment effects.

Sejong City Prepares Infrastructure Support Including Electricity and Water

Samsung Electro-Mechanics has requested that Sejong city supply the electricity and water needed for the plant expansion. In response, the city is preparing measures to expand related infrastructure and is also reviewing a plan to utilize parking lot space within the Myeonghak Industrial Complex. The city has stated that sufficient land is available for the plant expansion. A city official explained that the city would move as quickly as possible to accommodate the company's requests so the investment can proceed without disruption.

Part of Balanced Regional Development and Future Industry Cultivation

This expansion is linked to a broader wave of large-scale investment across the domestic semiconductor industry. Samsung has previously announced plans to continue major investments in regional hubs across Yeongnam, Honam, and Chungcheong, and the Sejong plant expansion is an extension of this policy of balanced regional development. Chairman Lee Jae-yong has explained that substrates are cutting-edge products essential not only for AI servers but also for general servers, computers, and electric vehicles. Sejong city said it hopes this investment will help establish the region as a hub for producing advanced semiconductor components.