Samsung Electro-Mechanics and Nvidia to co-fund AI chip substrate lines in Korea
In short
Samsung Electro-Mechanics (삼성전기) said on 21 October that it has agreed a strategic business partnership with Nvidia. The two will jointly invest in dedicated AI chip package substrate lines at its Sejong and Busan sites, with supply to Nvidia starting this year and running for several years. The company forecast that Nvidia volumes will grow at a double-digit annual average rate.
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Samsung Electro-Mechanics said on 21 October that it has concluded a strategic business partnership with Nvidia to strengthen the global AI chip supply chain. Under it, the two companies will invest jointly in dedicated production lines for AI chip package substrates at Samsung Electro-Mechanics' Sejong and Busan sites. The company will supply package substrates for next-generation AI chips to Nvidia over several years, starting this year. [ 2 , 3 , 5 , 6 , 10 ]
Yonhap, citing the industry, reported that Nvidia formally announced the partnership at its annual developer event GTC 2026 in Berlin, after Jensen Huang's keynote. Yonhap said the two companies' cooperation had been known through the industry, but that this was the first time Nvidia had formalised the strategic partnership. [ 1 , 14 ]
Supply covers substrates for Nvidia's compute chipsets and package substrates for network (switch) chips that handle high-speed links between chips inside data centres. Samsung Electro-Mechanics forecast that its Nvidia supply volume will grow at a double-digit annual average rate over the coming years. It said that in 2028 this volume is expected to account for a significant share of its total annual package substrate capacity. [ 2 , 3 , 5 , 6 , 10 ]
Debora Shoquist (데보라 쇼퀴스트), Nvidia's vice president for operations, said meeting the pace of AI infrastructure build-out requires expanded production capacity worldwide. She said the cooperation widens Nvidia's network of substrate supply partners and secures additional capacity. Samsung Electro-Mechanics president Jang Deok-hyun (장덕현) said he was glad to join as a core infrastructure partner of Nvidia and that the company would act as a total solution provider. [ 2 , 3 , 5 , 7 , 10 ]
Several outlets added context from single sources. Korea Economic Daily reported that the contract is worth several trillion won, the largest for FC-BGA substrates, and that Nvidia asked for stable supply as shortages of high-value substrates deepened. Seoul Economic Daily said the company had earlier announced investment of 23 trillion won through 2040 in the Sejong and Busan sites and that Nvidia is expected to bear part of it. CBS NoCut News said a 4.27 trillion won expansion at Sejong announced recently is analysed to refer to Nvidia cooperation. [ 7 , 9 , 16 ]
Why it matters
Outlets say Nvidia aims to secure a stable supply of advanced substrates and ease supply bottlenecks in global AI infrastructure. They say Samsung Electro-Mechanics expands its high-value package substrate business. The documents do not give the size of the joint investment.
Key facts
- Samsung Electro-Mechanics and Nvidia announced a strategic business partnership on 21 October to supply AI chip package substrates. [ 1 , 2 , 3 , 4 , 5 , 6 , 10 , 13 , 16 ]
- The two companies will invest jointly in dedicated production lines for AI chip package substrates at Samsung Electro-Mechanics' Sejong and Busan sites. [ 1 , 2 , 3 , 4 , 5 , 6 , 7 , 10 , 14 ]
- Samsung Electro-Mechanics will supply package substrates to Nvidia over several years starting this year. [ 2 , 3 , 4 , 5 , 6 , 10 , 14 ]
- Supply covers substrates for Nvidia's compute chipsets and package substrates for network (switch) chips that link chips inside data centres. [ 1 , 2 , 3 , 4 , 5 , 6 , 10 ]
- Samsung Electro-Mechanics expects its Nvidia supply volume to grow at a double-digit average annual rate and to account for a significant share of its total package substrate capacity in 2028. [ 2 , 3 , 5 , 6 , 10 , 14 ]
- Nvidia announced the partnership at its GTC 2026 developer event in Berlin after Jensen Huang's keynote, Yonhap reported. [ 1 , 14 ]
Confirmed by several sources
- Samsung Electro-Mechanics and Nvidia announced a strategic business partnership on 21 October for AI chip package substrate supply. [ 1 , 2 , 3 , 4 , 5 , 6 , 10 , 13 , 16 ]
- Dedicated lines will be built at the Sejong and Busan sites with joint investment. [ 1 , 2 , 3 , 4 , 5 , 6 , 7 , 10 , 14 ]
- Supply to Nvidia starts this year and runs for several years. [ 2 , 3 , 4 , 5 , 6 , 10 , 14 ]
- Samsung Electro-Mechanics forecasts double-digit average annual growth in Nvidia volumes and a significant share of its total package substrate capacity in 2028. [ 2 , 3 , 5 , 6 , 10 , 14 ]
- Nvidia's Debora Shoquist said the cooperation widens its network of substrate supply partners and secures additional production capacity. [ 2 , 3 , 5 , 7 , 10 ]
Still unclear
- Contract value Korea Economic Daily alone reported a contract worth several trillion won, the largest for FC-BGA substrates; no other document gives a figure.
- Size of the joint investment and Nvidia's share Seoul Economic Daily said the company earlier announced 23 trillion won of investment through 2040 and that Nvidia is expected to bear part of it. CBS NoCut News said a 4.27 trillion won Sejong expansion is analysed to refer to Nvidia cooperation. No document gives the amount of this joint investment.
- Existing supply of NV Switch substrates Yonhap said the industry has reported that Samsung Electro-Mechanics is mass-producing FC-BGA for Nvidia's NV Switch; no other document states this.
What local media are saying
Timeline, local time
- Yonhap, Newsis and Asia Economy publish reports of the partnership, which is dated 21 October. [ 1 , 2 , 3 ]
- Korea Economic Daily reports a contract worth several trillion won. [ 9 ]
- Kyunghyang Shinmun publishes the Yonhap-based report, citing the GTC 2026 announcement in Berlin. [ 14 ]
- On 22 October, CBS NoCut News links the partnership to the company's earlier 4.27 trillion won Sejong expansion. [ 16 ]