Samsung reportedly developing high-value FC-BGA substrate for Apple M2 silicon, company investing billions in Korea and Vietnam anticipating supply shortage in 2027
Apple is slated to introduce several M2-powered devices this year. The M2 SoC is touted to be an upgrade to the M1 series of SoCs, and we've already seen some early projections pitting the upcoming SoC against the likes of a Core i9-12900HK and an RTX 3070. Apparently, Apple is on track to ensuring enough availability of M2 silicon thanks to help from Samsung.
It is being learnt Samsung is developing the flip-chip ball grid array (FC-BGA) packaging for Apple's upcoming M2 series of SoCs. The FC-BGA is a printed circuit board that connects the chip to the main substrate. The FC-BGA is being developed by Samsung's Electro-Mechanics division that also supplied FC-BGAs for the M1 series.
ET News reports that Samsung is once again supplying the FC-BGA connects to the M2. Apparently, Apple began development of the M2 SoC immediately after releasing M1-based Macs. The company was impressed by Samsung's efforts with the M1 and has decided to continue with the same FC-BGA vendor for the M2.
FC-BGA is a highly complex technology and only few companies apart from Samsung such as Japan's Ibiden and Taiwan's Unimicron have the ability to reliably supply FC-BGA to Apple. Samsung Electro-Mechanics has been investing a lot to become a formidable player in the FC-BGA niche.
Samsung has invested US$241 million (KRW 300 billion) in a South Korean FC-BGA fab and upwards of US$ 1 billion (KRW 1.3 trillion) in an FC-BGA production facility in Vietnam. The company expects supply shortage by 2027 and is thus trying to court as many customers as possible.
LG Innotek has also entered the FC-BGA business but is apparently not in the reckoning for supplying substrates to the M2 lineup.