Nvidia adds Samsung Electro-Mechanics to substrate supply chain, plans capacity expansion in S. Korea
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,…
Nvidia, the leading U.S. chip manufacturer, announced on Wednesday that it has added Samsung Electro-Mechanics, a subsidiary of Samsung Electronics, to its semiconductor substrate supply chain. This move is part of Nvidia's strategy to expand its manufacturing capacity.
Samsung Electro-Mechanics, which is the electronic components division of Samsung Electronics, will initially provide production capacity from its existing facilities in South Korea. Additionally, the partnership will facilitate upgrades at their existing sites and the construction of new factories in Sejong and Busan, South Korea. Nvidia projects that by 2028, a significant portion of Samsung Electro-Mechanics' total annual package substrate production capacity will be dedicated to Nvidia.
In a separate press release, Samsung Electro-Mechanics characterized the arrangement as a strategic business partnership aimed at strengthening the global artificial intelligence (AI) semiconductor supply chain. The South Korean firm plans to supply Nvidia with package substrates for AI semiconductors under a multiyear agreement starting in 2026.
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