Tesla and Nvidia Target 2028 Production at Samsung Substrate Lines

Tesla and Nvidia plan to expand Samsung Electro-Mechanics’ advanced chip-substrate capacity, with mass production at a dedicated Sejong line targeted for the second half of 2028.

The planned investment totals 3.7 trillion won: 1.1 trillion won from Tesla and 2.6 trillion won from Nvidia. Samsung Electro-Mechanics is expanding production facilities in Sejong and Busan, South Korea.

Tesla’s portion would cover construction and equipment for its Sejong line. The companies have a five-year supply agreement running from 2029 through 2033, with the substrates intended for chips in Tesla’s autonomous-driving vehicles and Optimus humanoid robots.

The Sejong project schedule calls for building work to finish by the end of 2027, followed by equipment installation and trial operations in the first half of 2028. Nvidia’s planned capacity expansion would support substrates for AI computing chips and data-center networking equipment.

FC-BGA substrates connect high-performance chips, including CPUs, GPUs and AI accelerators, to external circuits and carry signals and power. Samsung Electro-Mechanics’ new lines are planned to begin mass production in 2028.