- Joint investment to expand dedicated production facilities in Sejong and Busan, with a multi-year supply agreement beginning in 2026
- Stable supply of advanced substrates for next-generation AI processors and high-speed networking solutions to help alleviate AI infrastructure supply chain bottlenecks
SEOUL, South Korea, Oct. 21, 2026 /PRNewswire/ — Samsung Electro-Mechanics announced today that it has entered into a strategic business partnership with NVIDIA to strengthen the global AI semiconductor supply chain and accelerate the expansion of next-generation AI infrastructure.
Samsung Electro-Mechanics and NVIDIA Announce Strategic Partnership to Supply ABF Substrates
Under the agreement, the two companies will jointly invest in expanding dedicated manufacturing facilities for ABF package substrates used in AI semiconductors. Leveraging the expanded production capacity, Samsung Electro-Mechanics plans to supply NVIDIA ABF package substrates beginning in 2026.
The partnership will enable NVIDIA to proactively secure stable supply of advanced package substrates essential for the mass production of its AI chipset, helping alleviate supply chain bottlenecks in the rapidly expanding global AI infrastructure market.
For Samsung Electro-Mechanics, the agreement represents a significant opportunity to accelerate its expansion into the high-value-added AI semiconductor package substrate market, where technological barriers to entry are exceptionally high, while further strengthening its competitive position in the global market.
Dedicated Production Facilities in Sejong and Busan to Support Multi-Year Supply of AI Processor and Networking Substrates
To ensure the timely delivery of ABF substrates, Samsung Electro-Mechanics will establish dedicated production lines at its key manufacturing sites in Sejong and Busan, South Korea.
The supply agreement covers advanced package substrates for NVIDIA’s compute chipsets, as well as substrates for high-speed networking switches that enable ultra-fast chip-to-chip connectivity within data centers. Deliveries will start in 2026.
Over a multi-year period, starting in 2026, the volume of package substrates supplied by Samsung Electro-Mechanics to NVIDIA is expected to increase at a double-digit annual rate. By 2028, production allocated to NVIDIA is projected to account for a significant portion of Samsung Electro-Mechanics’ total annual package substrate production capacity.
Advanced Packaging Technologies: Larger Substrates and Embedded Passive Components
As package substrates become larger and incorporate more technology like embedded devices, manufacturing complexity increases significantly. Ultra-fine circuit patterning is essential to minimizing signal loss, while advanced warpage control and substrate flatness technologies are critical to maintaining manufacturing yields and ensuring long-term reliability.
In particular, next-generation AI chips require sophisticated power management solutions to suppress electrical noise generated during ultra-high-speed computing and maximize power efficiency. To meet these demanding requirements, advanced packaging processes embed passive components, including multilayer ceramic capacitors (MLCCs) and silicon capacitors, directly within the substrate structure.
Samsung Electro-Mechanics possesses advanced substrate microfabrication capabilities designed to meet the demanding specifications of current and next-generation semiconductor packages, supported by its world-class expertise in MLCC and silicon capacitor technologies. By integrating these core technologies, Samsung Electro-Mechanics aims to deliver high-performance, high-reliability package substrate solutions optimized for the evolving requirements of AI computing infrastructure.
Duck-Hyun Chang, President and CEO of Samsung Electro-Mechanics, said, "It is a great honor to join NVIDIA, a global leader driving AI innovation, as a key infrastructure partner." "By combining our advanced FC-BGA manufacturing capabilities with our differentiated expertise in high-reliability MLCC technologies, Samsung Electro-Mechanics will fully leverage its strengths as a comprehensive solutions provider to ensure that NVIDIA’s AI platforms are delivered to the market on time with the highest levels of performance and quality," Chang added.
Debora Shoquist, executive vice president, operations of NVIDIA, said, "The pace of the AI infrastructure buildout requires us to expand manufacturing capacity on a global scale. Our work with Samsung Electro-Mechanics broadens our network of substrate partners and adds manufacturing capacity to help us scale production and deliver the accelerated computing platforms our customers need."
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