00:02you're listening to ai prism from seoul economic daily samsung electromechanics just approved a
00:09record 6.8 trillion won investment in ai chip substrates that's the company's largest single
00:16product bet in its history if your supply chain touches korea this is the kind of board call that
00:22resets your own capacity math three numbers frame it 6.8 trillion won in new capacity
00:28a projected 2.3 times jump in quarterly profit and a one that keeps sliding against the dollar
00:36all three are moving at once it's tuesday september 29th let's look at a business story shaping
00:42corporate korea samsung electromechanics builds fcbga substrates the high density packaging that
00:49connects ai accelerators and server cpus to their boards demand for those substrates has surged
00:55alongside the broader ai build out and global customers are locking in long-term supply
01:00commitments the company had already flagged an 8 trillion won expansion plan in july and this week's
01:07move builds directly on it here's what the numbers show samsung electromechanics is investing 4.27
01:14trillion won or about 3.1 billion dollars in its sejong plant its biggest single product commitment
01:21on record running from this month through may 2028 with mass production starting september 2028
01:28a separate 2.51 trillion won or about 1.8 billion dollars goes to its vietnam plant expanding packaging
01:36capacity through april 2028 analysts now peg third quarter operating profit at 605.1 billion won or about
01:45436 million dollars 2.3 times last year's 260.3 billion won the one weakened to 1365.10 per dollar
01:57on tuesday up 7.61 on the day as u.s treasury yields hit their highest level since 2007. korea's
02:06new finance
02:06minister and the bank of korea governor held their first meeting this week pledging closer coordination
02:12between fiscal and monetary policy even as the two sides disagreed on how far that coordination should
02:18reach tsmc meanwhile is pursuing five more advanced packaging plants in southern taiwan to meet the same
02:26ai-driven demand samsung electromechanics is chasing so what does this mean for corporate korea's
02:32boardrooms earlier we said three numbers were moving at once capacity profit and the one and together
02:39they widen the gap between ai-linked suppliers and everyone else exposed to one weakness if your
02:46supply chain sits anywhere near ai substrates memory or advanced packaging treat this as your cue to lock
02:54in your own capacity commitments now not next quarter watch three things sejong's ramp to mass
03:00production in september 2028 whether u.s treasury yields keep climbing and how far the bank of korea
03:07and the new finance minister actually align on policy in the fourth quarter that's today's ai prism ceo
03:14this episode was produced with ai assistance based on seoul economic daily reporting and reviewed by a
03:21human editor ai prism is a juan ifra award-winning series we'll be back tomorrow you've been listening
03:28to ai prism from seoul economic daily
