Samsung Electro-Mechanics, Nvidia to Expand FC-BGA Production

What happened

On Oct. 21, Samsung Electro-Mechanics announced it had signed a strategic business partnership with Nvidia to supply semiconductor package substrates. The two companies will jointly invest to establish dedicated production facilities for artificial intelligence (AI) semiconductor package substrates at Samsung Electro-Mechanics' Sejong and Busan plants; the plan to expand package substrate production lines through customer-backed investment, under consideration since the first half of 2026, has taken shape through the Nvidia partnership. The products include flip-chip ball grid array (FC-BGA) substrates for AI computing chips and for network switches that enable high-speed connections between chips in data centers. Samsung Electro-Mechanics will supply next-generation substrates from its Korean production facilities under a multiyear arrangement beginning in 2026. Supply volumes are expected to grow at a double-digit annual rate starting in 2026, and by 2028 Nvidia-related production is expected to account for a significant share of the company's total capacity. The substrates will also embed passive components including multilayer ceramic capacitors (MLCCs) and silicon capacitors (Si-Caps), which will help control power noise generated during ultra-high-speed computing and maximize power efficiency. This is a planned/expected expansion; implementation remains to be carried out.

Impact and signal

Affected components and suppliers

Source and time

Source: The Elec · 10/21/2026 · View original source