Nvidia and Samsung Electro-Mechanics co-invest in ABF substrate capacity

What happened

Nvidia and Samsung Electro-Mechanics will jointly invest in dedicated ABF substrate (package substrate) production lines in South Korea under a multi-year agreement that makes Samsung Electro-Mechanics a supplier of package substrates for Nvidia's AI processors and networking switches. The new lines will be set up at Samsung Electro-Mechanics' sites in Sejong and Busan, with deliveries due to start in 2026. Neither company has disclosed the investment amount or how the cost will be split. The agreement covers substrates for Nvidia's compute chipsets and for high-speed networking switches that connect chips inside data centres. Samsung Electro-Mechanics expects its supply volume to Nvidia to grow at a double-digit annual rate, and by 2028 Nvidia is projected to take what the company calls a significant portion of its total annual package substrate capacity. According to the company, the partnership will give Nvidia a stable supply of substrates for mass production of its AI chips and help ease supply chain bottlenecks in the AI infrastructure market, while giving Samsung Electro-Mechanics entry into the high-end AI substrate market, where it says technical barriers are exceptionally high. The agreement comes shortly after Samsung Electro-Mechanics signed a KRW 360.5 billion supply deal for memory semiconductor package substrates with an unnamed global customer. The expansion is planned and not yet in production.

Impact and signal

Affected components and suppliers

Source and time

Source: Evertiq · 10/22/2026 · View original source