Nvidia adds Samsung Electro-Mechanics to substrate supply chain, plans capacity expansion in S. Korea
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NVIDIA logo is displayed on a screen ahead of NVIDIA CEO Jensen Huang’s keynote at the NVIDIA GTC conference, focused on advances in AI and computing shaping industries, in Berlin, Germany, Wednesday. Reuters-Yonhap
WASHINGTON — U.S. chip giant Nvidia Corp. said Wednesday that South Korea’s Samsung Electro-Mechanics Co. is joining its semiconductor substrate supply chain as part of a broader initiative to expand manufacturing capacity.
Samsung Electro-Mechanics, the electronic components unit of Samsung Electronics Co., will initially provide production capacity from its existing operations in South Korea, while the collaboration will also support facility upgrades and new factories in Sejong and Busan, South Korea, according to Nvidia.
By 2028, production allocated to Nvidia is projected to account for a significant portion of Samsung Electro-Mechanics’ total annual package substrate production capacity, the U.S. company said.
The South Korean company also issued a separate press release, calling the deal a strategic business partnership to strengthen the global artificial intelligence (AI) semiconductor supply chain.
Samsung Electro-Mechanics said it plans to supply Nvidia with package substrates for AI semiconductors under a multiyear agreement beginning in 2026.
Separately, Nvidia and U.S.-based Amkor Technology Inc. plan to expand advanced semiconductor packaging capacity in South Korea, targeting an increase of more than 300 percent in interposer wafer capacity by the end of 2028, the U.S. company said.
The planned expansion, alongside Amkor Technology’s development of new manufacturing facilities in South Korea, will support higher production volumes for Nvidia’s current and next-generation platforms.
The announcements were part of Nvidia’s broader initiative unveiled at its GTC event in Berlin to expand global manufacturing capacity with suppliers amid growing demand for AI computing infrastructure.
Nvidia said agreements with Samsung Electro-Mechanics, Japan’s Ibiden Co. and Taiwan’s Unimicron Technology Corp. would contribute to its plan to increase substrate capacity for its products by 2.5 times over the next three years.
