Nvidia has added Samsung Electro-Mechanics to its AI chip substrate supply chain under a multiyear agreement beginning in 2026, with production expansion planned in Sejong and Busan as Nvidia targets a 2.5-fold increase in substrate capacity.
S-based semiconductor giant Nvidia has added South Korea’s Samsung Electro-Mechanics to its semiconductor substrate supply chain as part of a broader strategy to expand manufacturing capacity and meet rising demand for artificial intelligence (AI) computing infrastructure. The partnership includes a multiyear supply agreement beginning in 2026, with production capacity and facility expansion planned across South Korea.
Samsung Electro-Mechanics, the electronic components arm of Samsung Electronics, will initially supply Nvidia using capacity from its existing South Korean operations. The companies will also support facility upgrades and establish dedicated production lines at manufacturing sites in Sejong and Busan to increase output.
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The agreement covers advanced package substrates used in Nvidia’s AI computing chipsets and high-speed networking switches that enable rapid data transfer within data centres. These substrates are essential components in semiconductor packaging, connecting chips to external circuits and supporting the performance of advanced computing systems.
Samsung Electro-Mechanics expects supplies to increase over the coming years. By 2028, production allocated to Nvidia is projected to represent a significant portion of the South Korean company’s annual package substrate manufacturing capacity. The agreement is expected to strengthen Samsung Electro-Mechanics’ position in the high-value semiconductor components market while helping Nvidia secure the supplies required for its expanding AI platforms.
The partnership forms part of Nvidia’s wider initiative to increase manufacturing capacity across its global supply chain. The company plans to raise its substrate capacity by 2.5 times over the next three years through agreements with Samsung Electro-Mechanics, Japan’s Ibiden and Taiwan’s Unimicron Technology.
Nvidia is also working with US-based Amkor Technology to expand advanced semiconductor packaging capacity in South Korea. The companies are targeting an increase of more than 300% in interposer wafer capacity by the end of 2028, alongside the development of additional manufacturing facilities.
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The expansion comes as demand for AI infrastructure drives investment in chips, advanced packaging and other critical semiconductor components. By securing additional production capacity and diversifying its supplier network, Nvidia aims to support higher manufacturing volumes for current and next-generation computing platforms while strengthening supply-chain resilience.