Samsung Electro-Mechanics and NVIDIA have entered into a strategic business partnership and will jointly invest in expanding production facilities for AI semiconductor package substrates. New lines will be built at facilities in Sejong and Busan to expand substrate supplies to NVIDIA.
Samsung Electro-Mechanics announced that it has entered into a strategic business partnership with NVIDIA and will make a joint investment to expand an AI semiconductor package substrate production plant. The goals are to enable NVIDIA to secure cutting-edge substrates reliably and to strengthen Samsung Electro-Mechanics' position in the global high-value-added AI substrate market.
New production lines will be installed at facilities in Sejong and Busan, with supplies of substrates for NVIDIA computing chipsets and in-data-center networks scheduled to begin this year. Samsung Electro-Mechanics disclosed on the 28th of last month that it would invest KRW 4.27 trillion in expanding equipment at its Sejong facility, and NVIDIA is also expected to invest in the expansion project.
A Samsung Electro-Mechanics representative said that supply volumes in the AI semiconductor package substrate business are expected to grow by double digits or more annually for several years from this year, and noted that supplies to NVIDIA could account for a substantial portion of total production capacity in 2028. The company, which has world-class technologies in substrate microfabrication and MLCC manufacturing, has formalized its business relationship with NVIDIA through the partnership.
President Jang Deok-hyun said, “We will participate as NVIDIA's core infrastructure partner,” indicating the company's intention to supply the AI platform market in its role as a supplier.