#South Korea #AI Technology #NVIDIA #Samsung #Sejong

Strategic Partnership between Samsung Electro-Mechanics and NVIDIA

On October 21, 2026, Samsung Electro-Mechanics announced a groundbreaking strategic partnership with NVIDIA, aimed at enhancing the global supply chain for Artificial Intelligence (AI) semiconductors. This collaboration focuses specifically on the supply of advanced ABF (Ajinomoto Build-up Film) package substrates, essential components for next-generation AI processors and high-speed networking solutions.

Background and Importance of the Partnership

As the demand for AI technology continues to skyrocket, the need for reliable and advanced materials to support semiconductors also rises. The partnership between Samsung and NVIDIA comes at a crucial time when supply chain bottlenecks threaten the smooth transition into more sophisticated AI infrastructures. By teaming up, the two companies aim to bolster production capabilities and ensure that NVIDIA can maintain a steady and efficient manufacturing process for its AI chipsets.

Joint Investments and Facility Expansions

Under the terms of the agreement, both companies will make significant investments to expand dedicated production facilities located in Sejong and Busan, South Korea. This expansion is aimed at ramping up the production of ABF substrates, with operations set to begin as early as 2026. The facility enhancements will not only serve NVIDIA's needs but also strengthen Samsung Electro-Mechanics' position in the high-value-added market for semiconductor package substrates.

Supply Agreement Details

The multi-year supply agreement between the two companies is expected to initiate a substantial increase in the volume of package substrates supplied to NVIDIA, with projections indicating a double-digit annual growth rate. By 2028, it is anticipated that the substrates allocated to NVIDIA will constitute a significant portion of Samsung's total annual production capacity in this sector.

Advanced Packaging Technologies

The modern landscape of semiconductor packaging is evolving, with an increase in substrate sizes and the inclusion of embedded passive components. These advancements lead to increased manufacturing complexities but are essential for minimizing signal loss and enhancing power efficiency in AI applications. Samsung Electro-Mechanics plans to utilize its sophisticated manufacturing techniques to offer high performance and reliable package substrates that meet the rigorous demands of next-generation AI computing needs.

Leadership Insights

Duck-Hyun Chang, President and CEO of Samsung Electro-Mechanics, expressed his enthusiasm about the collaboration: "Partnering with NVIDIA, a leader in AI innovation, presents an extraordinary opportunity for us. Together, using our advanced manufacturing capabilities and unique expertise, we aim to expedite the timely market delivery of NVIDIA's AI platforms with enhanced quality and performance."

Debora Shoquist, NVIDIA's Executive Vice President of Operations, remarked on the partnership's significance: "As we strive to meet the accelerating demands of AI infrastructure, expanding our manufacturing capabilities globally is essential. This collaboration with Samsung Electro-Mechanics broadens our substrate partnership network and enhances our production capacity, allowing us to provide cutting-edge computing platforms to our customers."

Conclusion

The partnership between Samsung Electro-Mechanics and NVIDIA is not just a significant business endeavor; it represents a crucial step toward robust AI development that will likely impact multiple industries. As AI technology continues to infiltrate various sectors, the success of this initiative could pave the way for more innovations in the realm of semiconductor supply chains and advanced manufacturing processes.