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South Korea’s Samsung Electro-Mechanics is reportedly set to receive investments worth 3.7 trillion won ($2.8 billion) from Tesla and Nvidia to expand production of advanced semiconductor substrates used in artificial intelligence (AI) chips, according to a Maeil Business Newspaper report
cited by Reuters on October 22.
The report said Tesla would contribute 1.1 trillion won, while Nvidia would invest 2.6 trillion won. The planned facilities in Sejong, South Korea, would manufacture flip-chip ball grid array (FC-BGA) substrates, which are essential components in advanced semiconductor packaging. However, the reported investment amounts and individual contributions have not been confirmed in official company announcements.
Separately, Samsung Electro-Mechanics and Nvidia announced a strategic partnership on October 21 to expand the production of advanced packaging substrates for AI processors and high-speed networking equipment used in data centres. The companies plan to expand dedicated manufacturing facilities in Sejong and Busan, with deliveries scheduled to begin in 2026.
Advanced semiconductor substrates connect chips to circuit boards and support the electrical connections required for high-performance computing. As AI processors become more powerful and complex, demand for these components is growing, prompting suppliers to increase production capacity.
Nvidia said its agreements with Samsung Electro-Mechanics, Japan’s Ibiden and Taiwan’s Unimicron Technology would support plans o increase substrate capacity for its products by 2.5 times over the next three years. The expansion is part of a broader effort to strengthen the supply chain for AI computing systems as demand for data-centre infrastructure continues to rise.
For Samsung Electro-Mechanics, the partnership offers an opportunity to expand its advanced semiconductor components business and strengthen its position in the AI hardware supply chain. For Nvidia, increased substrate production capacity could help support the manufacturing of its AI computing platforms and networking products.
The reported Tesla-linked investment would add a significant financial dimension to the expansion. However, the proposed $2.8 billion investment and the reported contributions from Tesla and Nvidia remain unconfirmed.
The strategic partnership between Samsung Electro-Mechanics and Nvidia, along with their plans to expand substrate production, has been announced by the companies.
The report said Tesla would contribute 1.1 trillion won, while Nvidia would invest 2.6 trillion won. The planned facilities in Sejong, South Korea, would manufacture flip-chip ball grid array (FC-BGA) substrates, which are essential components in advanced semiconductor packaging. However, the reported investment amounts and individual contributions have not been confirmed in official company announcements.
Separately, Samsung Electro-Mechanics and Nvidia announced a strategic partnership on October 21 to expand the production of advanced packaging substrates for AI processors and high-speed networking equipment used in data centres. The companies plan to expand dedicated manufacturing facilities in Sejong and Busan, with deliveries scheduled to begin in 2026.
Advanced semiconductor substrates connect chips to circuit boards and support the electrical connections required for high-performance computing. As AI processors become more powerful and complex, demand for these components is growing, prompting suppliers to increase production capacity.
Nvidia said its agreements with Samsung Electro-Mechanics, Japan’s Ibiden and Taiwan’s Unimicron Technology would support plans o increase substrate capacity for its products by 2.5 times over the next three years. The expansion is part of a broader effort to strengthen the supply chain for AI computing systems as demand for data-centre infrastructure continues to rise.
For Samsung Electro-Mechanics, the partnership offers an opportunity to expand its advanced semiconductor components business and strengthen its position in the AI hardware supply chain. For Nvidia, increased substrate production capacity could help support the manufacturing of its AI computing platforms and networking products.
The reported Tesla-linked investment would add a significant financial dimension to the expansion. However, the proposed $2.8 billion investment and the reported contributions from Tesla and Nvidia remain unconfirmed.
The strategic partnership between Samsung Electro-Mechanics and Nvidia, along with their plans to expand substrate production, has been announced by the companies.
