Samsung Electro-Mechanics Joins Nvidia's AI Chip Substrate Supply Chain

Nvidia has added Samsung Electro-Mechanics as a supplier of AI chip substrates, drawing on existing production in South Korea as it expands the component capacity needed for AI computing systems.

The companies announced the multiyear agreement Oct. 21. It covers ABF package substrates for Nvidia compute chipsets and high-speed networking switches used in data centers. The companies also plan to invest jointly in dedicated production lines in Sejong and Busan.

Samsung Electro-Mechanics expects the volume it supplies to Nvidia to grow at a double-digit annual rate over several years beginning in 2026. Nvidia aims to increase substrate capacity for its products by 2.5 times over three years through agreements involving Samsung Electro-Mechanics, IBIDEN and Unimicron. That target applies to the broader supply plan.

The substrates are used in AI chip packages and data-center networking equipment. Deliveries under the Samsung Electro-Mechanics agreement are scheduled to begin in 2026.