Simmtech to Invest 400 Billion Won in Next-Gen AI Server Substrate Production: Capacity Expansion Starts 2028

September 6, 2026

The Elec Inc. South Korea

Overview

Simmtech announced a phased 400 billion won (approx. $300 million) investment to expand production capacity for next-generation substrates used in AI servers. New facilities in Cheongju will boost output for SOCAMM module PCBs, multi-layer mSAP substrates, and system IC semiconductor substrates. The new lines are scheduled to sequentially begin operation from 2028, projected to increase annual SOCAMM module production capacity from 300 billion to 500 billion won.

In Depth

Key Findings

Simmtech announced a significant phased investment totaling 400 billion won (approximately $300 million) to expand its production capacity for next-generation substrates, addressing the growing demand from AI servers. This investment, formalized through a Memorandum of Understanding (MOU) with North Chungcheong Province and Cheongju City, will see new production facilities built in Oksan-myeon, Cheongju City, and within unused spaces at existing plants. These expansions will substantially increase manufacturing capabilities for SOCAMM (System-on-Chip Advanced Memory Module) module PCBs, multi-layer mSAP (modified Semi-Additive Process) substrates, and semiconductor substrates for system ICs. The new lines are slated to commence operations sequentially from 2028, with the annual production capacity for SOCAMM modules expected to increase from the current 300 billion won to 500 billion won.

Technical & Clinical Details

Next-generation substrates for AI servers are critical for enabling high-density interconnections between high-performance AI processors and HBM (High Bandwidth Memory). SOCAMM module PCBs are essential components in these complex AI systems, facilitating efficient integration of memory and processors. The mSAP technology, which Simmtech excels in, allows for finer circuit patterns than traditional subtractive processes, achieving high-density wiring and low-loss characteristics. This maximizes the high-speed data processing capabilities of AI chips. Simmtech, a leading South Korean semiconductor substrate manufacturer with a strong foundation in mSAP technology, is further strengthening its technological advantage and addressing the advanced packaging needs of the AI era with this investment.

As AI chips become larger and more multi-layered, substrates demand stricter dimensional stability, warpage control, and thermal management properties. Simmtech’s new production facilities will be equipped with state-of-the-art manufacturing technologies and cleanroom environments to meet these requirements, ensuring high-yield mass production. The scheduled commencement of operations from 2028 is particularly well-timed with the ongoing growth cycle of AI infrastructure, and is expected to contribute to alleviating supply chain challenges such as the ABF substrate and T-glass shortages reported by AI server vendors like Dell.

Background & Context

The rise of AI data centers has had a widespread impact across the entire semiconductor industry, especially dramatically increasing demand for high-performance GPUs, HBM, and advanced materials like ABF and IC substrates that connect them. The tight supply of TSMC’s CoWoS (Chip-on-Wafer-on-Substrate) packaging has created bottlenecks throughout the supply chain, presenting new business opportunities for substrate manufacturers like Simmtech. The South Korean government has designated the semiconductor industry as a national strategic sector, actively promoting the strengthening of advanced manufacturing capabilities domestically. Simmtech’s investment aligns with this national strategy, ensuring South Korea plays a crucial role in the AI-era semiconductor supply chain.

Strategic Significance & Outlook

Simmtech’s substantial investment is expected to significantly enhance its competitiveness in the next-generation AI server substrate market. The new lines, operational from 2028, will provide essential supply capacity for the continuous expansion of AI infrastructure, contributing to the stabilization of the global AI semiconductor supply chain. With SOCAMM module PCB production capacity increasing to 500 billion won, Simmtech is expected to deepen partnerships with AI chip design companies and memory manufacturers, leading technological innovation. As AI chips continue to evolve, demanding higher density, faster speeds, and lower power consumption from substrate technologies, Simmtech’s ongoing research and development and capital investments will remain a key focus.

Source: https://www.thelec.net/news/articleView.html?idxno=13591

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