Samsung Electric has joined forces with NVIDIA to strengthen the supply chain for next-generation AI (artificial intelligence) semiconductor package substrates. The two companies plan to accelerate their push into the global AI infrastructure market by expanding a dedicated factory (fab) through joint investment and beginning long-term supply starting in 2026.
On the 21st, Samsung Electric announced that it has entered into a strategic business partnership with NVIDIA to strengthen the global AI semiconductor supply chain and accelerate the expansion of next-generation AI infrastructure. The market for high-performance AI chip substrates for NVIDIA has long been considered a sector where Japanese firms such as Shinko Denki and Ibiden have effectively led supply by leveraging technological entry barriers.
The two companies will newly establish dedicated production lines at their Sejong and Busan sites, and are set to supply substrates for NVIDIA’s compute chipsets and package substrates for data center switches. Supply volumes for NVIDIA are expected to grow at an annual average of double digits or more starting this year, accounting for a significant portion of Samsung Electric’s total annual package substrate production capacity by 2028.
The relevant substrates feature flatness maintenance technology to prevent signal loss and suppress thermal deformation, as well as processes that directly embed MLCCs (multilayer ceramic capacitors) and silicon capacitors to maximize power efficiency. Samsung Electric plans to respond by leveraging its accumulated microfabrication technology and technical capabilities in MLCCs and silicon capacitors.
Jang Deok-hyun, CEO of Samsung Jeon Gi (President), stated, “We are honored to join as a key infrastructure partner for NVIDIA, which is leading global AI innovation.” He emphasized, “By combining our accumulated advanced FC-BGA (flip-chip ball grid array) manufacturing competitiveness with our unique high-reliability MLCC technology, we will fully perform our role as a total solution provider to ensure that NVIDIA’s AI platform is supplied to the market in a timely manner with top-tier performance and quality.”
Deborah Shoquist, Vice President of Operations at NVIDIA, said, “To keep pace with the speed of AI infrastructure development, an expansion of production capacity on a global scale is necessary.” She added, “Through our collaboration with Samsung Electric, we have broadened our substrate supply partner network and secured additional production capacity. Through this, we will scale up production and supply the accelerated computing platforms that customers require.”
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