Nvidia adds Samsung Electro-Mechanics to substrate supply chain, plans South Korea capacity expansion
Nvidia added Samsung Electro-Mechanics to its substrate supply chain, with AI package substrate shipments due from 2026.
Samsung Electro-Mechanics, the electronic components unit of Samsung Electronics Co., will initially provide production capacity from its existing operations in South Korea, Nvidia said. The collaboration will also support facility upgrades and new factories in Sejong and Busan, South Korea.
Nvidia said that by 2028, production allocated to it is projected to account for a significant portion of Samsung Electro-Mechanics' total annual package substrate production capacity. The South Korean company said in a separate press release that the deal is a strategic business partnership to strengthen the global AI semiconductor supply chain. It plans to supply Nvidia with package substrates for AI semiconductors under a multiyear agreement beginning in 2026.
Separately, Nvidia and U.S.-based Amkor Technology Inc. plan to expand advanced semiconductor packaging capacity in South Korea, targeting an increase of more than 300 percent in interposer wafer capacity by the end of 2028, Nvidia said. The planned expansion, alongside Amkor Technology's development of new manufacturing facilities in South Korea, will support higher production volumes for Nvidia's current and next-generation platforms.
The announcements were part of a broader initiative Nvidia unveiled at its GTC event in Berlin to expand global manufacturing capacity with suppliers amid growing demand for AI computing infrastructure. Nvidia said agreements with Samsung Electro-Mechanics, Japan's Ibiden Co. and Taiwan's Unimicron Technology Corp. would contribute to its plan to increase substrate capacity for its products by 2.5 times over the next three years.
Editor's Summary Nvidia is adding Samsung Electro-Mechanics to its substrate supply chain, with AI package substrate supply beginning in 2026 and capacity upgrades planned in South Korea. Nvidia and Amkor also plan a major expansion of advanced packaging capacity in South Korea by 2028. The moves are part of Nvidia's broader effort to raise supplier capacity as AI computing demand grows.