Samsung Electro-Mechanics, LG Innotek Unveil AI Package Substrates at KPCA

Three-line briefing

• Samsung Electro-Mechanics and LG Innotek showcased next-generation package substrates for AI semiconductors at KPCA Show 2026, held September 9-11, 2026 at Songdo Convensia in Incheon.
• Samsung Electro-Mechanics unveiled 2.5D and 2.1D package substrates, glass substrates, and large-area FC-BGA, and set a 2027 mass-production target for high-value-added FC-BGA used in AI training and inference.
• LG Innotek exhibited FC-BGA and glass substrates for AI accelerators, and said it is developing glass substrates with a 2028 mass-production target.

What KPCA Show 2026 revealed about the packaging race

The investment significance of this exhibition lies less in the chips themselves than in the substrates that connect them — which have emerged as a bottleneck for AI performance. According to Maeil Business, Samsung Electro-Mechanics and LG Innotek each unveiled large-area, high-layer-count, ultra-fine-circuit technologies needed for AI accelerators. However, the exhibits and stated targets are signals of business progress, not confirmation of finalized revenue or orders.

Samsung Electro-Mechanics' 2.5D package substrate focuses on reducing warpage in large-area substrates while enabling high-speed signal transmission and high-density connections. Its 2.1D package substrate was introduced as a structure that connects semiconductor chips without a silicon interposer. Within the scope of Maeil Business's reporting, customer names and contract sizes were not disclosed.

LG Innotek put FC-BGA and glass substrates for AI accelerators front and center. The glass core is a technology aimed at reducing the warpage and circuit distortion that occur as substrates scale up in size. Unlike Samsung Electro-Mechanics, LG Innotek presented its glass substrate mass-production target as 2028.

What the large-area figures indicate

Samsung Electro-Mechanics applied ultra-fine-circuit and high-layer-count technology to a large-area glass substrate product exceeding 100mm per side, according to Maeil Business. The exhibited FC-BGA measured 85mm by 85mm, and the ultra-large-area FC-BGA sample was about 40% larger in area than that product. These figures point to a technical challenge: as substrates grow larger, warpage control and connection precision become more critical.

Chip embedding — placing a chip inside the substrate — was described as a method that shortens the connection distance between chip and substrate, improving signal transmission performance and reducing power loss. However, production volume, yield, and actual commercialization status for each technology were not disclosed in the materials. Even if the 2027 mass-production target stays on schedule, investors should focus on confirmed shipments and customer adoption rather than the target itself.

Stocks to watch

• Samsung Electro-Mechanics: Exhibited 2.5D and 2.1D package substrates, glass substrates, and large-area FC-BGA together, and set a 2027 mass-production target for high-value-added FC-BGA for AI training and inference. The expanding technology portfolio is a factor that could fuel medium- to long-term growth expectations.
• LG Innotek: Unveiled FC-BGA and glass substrates for AI accelerators and is developing glass substrates with a 2028 mass-production target. However, with mass production still years away, near-term earnings contribution remains unconfirmed.
• Package substrate sector: The fact that both companies unveiled AI substrates at the same event shows that technology competition within the industry is ongoing. Since revenue and order figures were not disclosed, there is no basis to estimate the scale of sector-wide profit growth.

Risk check

• Yield and customer qualification are key variables as exhibited technologies transition to actual products, but yield figures and customer names for each technology were not disclosed.
• Samsung Electro-Mechanics' 2027 and LG Innotek's 2028 mass-production targets are plans. If these timelines slip, the pace at which today's exhibition expectations translate into earnings estimates will also slow.
• As large-area, high-layer-count substrates increase in process complexity, production stability becomes more important. If actual shipment volumes fall short of targets, technology unveilings alone will not be enough to explain profit improvement.
• Because revenue and order figures were not disclosed, it is not possible to compare the level of expectations already priced into shares with the value contribution of the new businesses.

Bottom line

The KPCA Show 2026 exhibits from Samsung Electro-Mechanics and LG Innotek confirmed the technology direction and mass-production targets for AI package substrates, but the conditions for a stock re-rating are shipments, yield, and customer adoption — not the exhibition itself.

FAQ

When is Samsung Electro-Mechanics targeting mass production of its AI package substrates?

According to Maeil Business, Samsung Electro-Mechanics set a 2027 target for mass production of high-value-added FC-BGA for AI training and inference. Actual achievement and production scale have not yet been confirmed.

What next-generation substrates did LG Innotek unveil?

LG Innotek exhibited FC-BGA and glass substrates for AI accelerators at KPCA Show 2026. The company said its glass substrate is under development with a 2028 mass-production target.

What investment information was not confirmed at this event?

Revenue figures, order sizes, customer names, and production volume and yield for each technology were not included in the available materials. As such, the exhibited technologies alone cannot confirm near-term earnings or mass-production success.

This article was automatically summarized and analyzed based on the original news report. View original (Maeil Business)