The South Korean printed circuit board industry is witnessing a significant resurgence, driven by the explosive demand for Artificial Intelligence and a robust recovery in the memory market. Data from the first three quarters of 2025 indicates a strong upward trajectory for major players, with momentum expected to carry well into 2026.
The AI Effect on Hardware
As global tech giants race to build more powerful AI infrastructure, the hardware foundation supporting these systems has become critical. The spotlight is currently on high-value components necessary for AI accelerators and high-performance computing. Specifically, the demand for Flip Chip Ball Grid Array, or FCBGA, substrates has surged. These substrates are essential for connecting high-end chips, such as Graphics Processing Units, to the main circuit board, allowing for the high-speed data transfer required by Generative AI models.
Samsung Electro-Mechanics Leads the Charge
A prime example of this success is Samsung Electro-Mechanics. In the period from January to September 2025, their package substrate division reported revenue of one trillion six hundred seventy-five billion two hundred million won. This represents a twelve percent increase compared to the same period in the previous year.
The growth is not accidental. It is fueled by expanded sales of FCBGA for servers, substrates for memory, and Ball Grid Array substrates for mobile Application Processors. Notably, the company projects that its FCBGA revenue for the full year of 2025 will hit an all-time high, driven largely by solid demand from major GPU customers.
Outlook for 2026
Industry analysts predict that this is not a short-term spike. The structural shift toward AI servers and the increasing complexity of semiconductor packaging mean that the demand for high-layer, large-area substrates will continue to grow. Samsung Electro-Mechanics is poised for double-digit growth in this sector again in 2026, as they secure new clients and increase the supply of high-value-added products.
As the industry moves forward, the synergy between advanced memory technologies and next-generation substrates will likely remain the key driver of profitability for Korean manufacturers.
