Samsung Electro Mechanics partners with NVIDIA for ABF substrate supply
Samsung Electro Mechanics partnered with NVIDIA to supply ABF package substrates expanding production facilities in Sejong and Busan to meet artificial intelligence semiconductor demand
SEOUL, South Korea - Samsung Electro-Mechanics has formed a strategic partnership with NVIDIA to bolster the global AI semiconductor supply chain and accelerate the development of advanced AI infrastructure. The collaboration involves jointly investing in the expansion of manufacturing facilities specifically for ABF package substrates, which are crucial components used in AI semiconductors.
Samsung Electro-Mechanics intends to supply NVIDIA with these substrates starting in 2026, addressing potential supply chain constraints in the rapidly growing AI market.
This partnership enables Samsung Electro-Mechanics to capitalize on a lucrative opportunity to strengthen its position in the high-value-added AI semiconductor package substrate market, while NVIDIA gains secure access to a stable supply of advanced package substrates required for mass-producing its AI chipsets. Samsung will establish dedicated manufacturing lines at its Sejong and Busan facilities to ensure timely delivery of the substrates, with volumes expected to grow significantly over a multi-year period, reaching a substantial portion of Samsung's total annual production capacity by 2028.
The partnership also emphasizes Samsung's advanced packaging technologies, including the use of larger substrates with embedded passive components such as multilayer ceramic capacitors (MLCCs) and silicon capacitors. These components are integral to maintaining manufacturing yields and optimizing power efficiency for next-generation AI chips.
Samsung Electro-Mechanics' expertise in FC-BGA manufacturing and MLCC technologies will be leveraged to deliver high-performance, high-reliability package substrates tailored to the evolving demands of AI computing infrastructure.
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