Samsung Electro-Mechanics to supply AI semiconductor substrates to NVIDIA

Samsung Electro-Mechanics and NVIDIA have entered into a strategic partnership to supply high-performance package substrates for artificial intelligence semiconductors. The two companies will jointly invest in expanding production capacity, with Samsung Electro-Mechanics establishing dedicated production lines at its Sejong and Busan facilities in South Korea.

The supply will include substrates for NVIDIA’s AI computing chips and high-speed network equipment used in data centers. Samsung Electro-Mechanics plans to utilize advanced Flip Chip Ball Grid Array (FC-BGA) technology, integrating Multi-Layer Ceramic Capacitors (MLCC) and silicon capacitors directly into the substrates to manage power noise and improve efficiency.

Samsung Electro-Mechanics expects its supply volume to NVIDIA to grow by double digits annually, projecting that NVIDIA-related orders will account for a significant portion of its total annual package substrate capacity by 2028. This move follows NVIDIA’s broader strategy to increase its substrate supply capacity by 2.5 times over the next three years through partnerships with various global suppliers.