Seoul:U.S. chip giant Nvidia Corp. has announced that Samsung Electro-Mechanics Co. will join its semiconductor substrate supply chain as part of its broader strategy to increase manufacturing capacity in South Korea. This collaboration will see Samsung Electro-Mechanics initially contribute production capacity from its current South Korean operations, with plans to support facility upgrades and establish new factories in Sejong and Busan.
According to Yonhap News Agency, by 2028, the production allocated to Nvidia is anticipated to constitute a significant portion of Samsung Electro-Mechanics' total annual package substrate production capacity. Samsung Electro-Mechanics has described the deal as a strategic business partnership aimed at bolstering the global supply chain for artificial intelligence (AI) semiconductors.
Nvidia further detailed that Samsung Electro-Mechanics plans to provide package substrates for AI semiconductors under a multiyear agreement starting in 2026. Additionally, Nvidia, in collaboration with U.S.-based Amkor Technology Inc., intends to expand advanced semiconductor packaging capacity in South Korea, aiming for a more than 300 percent increase in interposer wafer capacity by the end of 2028.
The expansions, along with Amkor Technology's development of new manufacturing facilities in South Korea, are expected to support increased production volumes for Nvidia's current and future platforms. These initiatives were part of Nvidia's broader plan, unveiled at its GTC event in Berlin, to expand global manufacturing capacity with suppliers due to the rising demand for AI computing infrastructure.
Nvidia indicated that agreements with Samsung Electro-Mechanics, Japan's Ibiden Co., and Taiwan's Unimicron Technology Corp. will contribute to its goal of increasing substrate capacity for its products by 2.5 times over the next three years.