Business · Companies · 3 hrs ago
Samsung Electro-Mechanics and Nvidia Agree on Long-Term AI Chipboard Supply
Samsung Electro-Mechanics and Nvidia have formed a strategic partnership to secure boards used in advanced AI chips.
The companies will jointly invest in expanding dedicated production lines at Samsung Electro-Mechanics' sites in Sejong and Busan, South Korea.
Samsung Electro-Mechanics plans to supply Nvidia for several years from 2026, including boards for computing chips and data-centre network switches.
These package boards connect and support chips, and must meet demanding technical requirements.
The deal is intended to expand supply and ease bottlenecks as demand for AI infrastructure grows.
Samsung Electro-Mechanics' Nvidia supply volumes are forecast to grow by at least double digits annually, with a substantial share of its total package-board capacity expected to go to Nvidia by 2028.
The companies say the expanded production capacity will help Nvidia scale its computing platforms; supply is due to begin in 2026.
Samsung Electro-Mechanics and Nvidia announced a strategic partnership to expand production of advanced package substrates for AI semiconductors.
The companies will jointly invest in dedicated production lines at Samsung Electro-Mechanics’ sites in Busan and Sejong, South Korea.
Samsung Electro-Mechanics plans to supply Nvidia with substrates for several years starting in 2026.
The products include substrates for Nvidia’s AI computing chips and network switches used for high-speed connections in data centers.
Nvidia said the partnership will expand its supplier network and production capacity as demand for AI infrastructure grows.
- Who
- Samsung Electro-Mechanics and Nvidia.
- What
- They will jointly invest in production lines and establish a multi-year supply partnership for AI semiconductor package substrates.
- When
- Announced on October 21, 2026. Supply is expected to begin in 2026.
- Where
- Samsung Electro-Mechanics’ Busan and Sejong sites in South Korea.
- Why
- To strengthen the AI semiconductor supply chain and expand production capacity for growing AI infrastructure needs.
This story does not have two clearly opposing sides.
Nvidia announced the strategic partnership after Jensen Huang’s keynote at GTC 2026 in Berlin.
Samsung Electro-Mechanics is expected to begin multi-year substrate supplies to Nvidia.
Nvidia’s supply volume is expected to account for a substantial share of Samsung Electro-Mechanics’ total package-substrate production capacity.
- Partners
- Samsung Electro-Mechanics and Nvidia
- Production sites
- Busan and Sejong, South Korea
- Supply start
- 2026
- Products
- AI computing chip and network-switch package substrates
- Supply growth
- Annual volume forecast to grow by double digits or more
- Expected capacity share
- A substantial share of Samsung Electro-Mechanics’ total package-substrate capacity by 2028
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