AI NewsWaveSamsung Electro-Mechanics and Nvidia Build Dedicated AI Chip Substrate Lines With Joint Investment
Key points
- Samsung Electro-Mechanics to supply AI chip substrates to Nvidia long term
- Dedicated lines to be built in Sejong and Busan with joint investment
- Nvidia supply volume to grow by double digits annually
Samsung Electro-Mechanics has formed a strategic business partnership with Nvidia to supply package substrates for AI chips. Industry News and Kukmin Ilbo reported that the two companies will build dedicated production lines at the Sejong and Busan sites with joint investment. Kukmin Ilbo wrote that Samsung Electro-Mechanics and Nvidia announced the deal on the 21st.
Outlets word the timing and target of the supply slightly differently. Digital Today reported that the deal involves supplying package substrates to Nvidia over multiple years starting in 2026, while Bloter wrote that the company will begin long-term supply this year. Chosun Biz and EBN reported long-term supply of substrates for next-generation AI chips and high-speed networking chips. Chosun Biz covered the news alongside GTC 2026, Nvidia's annual developer event held in Berlin, Germany, on the 21st.
A volume outlook also emerged. Bloter reported that supply volume to Nvidia will grow by double digits a year on average. Digital Daily said in its headline that the business will play a key role in total substrate capacity in 2028, and also introduced technology that embeds silicon capacitors and MLCCs in large-area FC-BGA.
The background to the expansion was also reported. According to TheElec, a plan to expand a new package substrate line based on customer investment, under review since the first half of this year, took concrete shape through the cooperation with Nvidia. TheElec called the new facility an FC-BGA dedicated fab, while Digital Today called it an AI substrate dedicated fab.
The news also affected the share price. Chosun Biz reported that as of 9:35 a.m. on the 22nd, Samsung Electro-Mechanics traded on the KOSPI at 1,204,000 won, up 36,000 won (3.08%) from the previous session. It said the stock rose more than 3% in early trading even as the KOSPI weakened. TechM added that LG Innotek, on the same day, also announced cooperation with Nvidia on physical AI sensing solutions.