Samsung Electro-Mechanics Secures Combined KRW 3.7 Trillion Investment from Tesla and NVIDIA to Expand AI Chip Substrate Production Lines

BlockBeats news, October 22, according to South Korean media reports, Tesla and Nvidia will invest KRW 1.1 trillion and KRW 2.6 trillion respectively, totaling approximately KRW 3.7 trillion ($2.5 billion), to support Samsung Electro-Mechanics in expanding its next-generation FC-BGA (Flip Chip Ball Grid Array) substrate production facilities.

Among them, Samsung Electro-Mechanics will expand a dedicated production line for Tesla at its Sejong plant, and the substrates produced will be used for AI chips in Tesla's autonomous vehicles and humanoid robot Optimus. The relevant long-term supply agreement runs from 2029 to 2033, a total of five years.

Nvidia plans to invest in Samsung Electro-Mechanics' expansion projects at its Sejong and Busan plants for the production of AI computing chips and data center network substrates. Samsung Electro-Mechanics plans to complete facility construction by the end of 2027, start mass production in the second half of 2028, and begin supplying Tesla in 2029.

FC-BGA is a key packaging substrate for high-performance chips such as AI accelerators, GPUs, and CPUs. As AI chip computing power increases, the supply of related substrates is becoming one of the bottlenecks in the industry chain. This cooperation is expected to help Samsung Electro-Mechanics expand high-end substrate capacity and secure long-term customer demand.