Key facts
- Samsung Electro-Mechanics will receive 3.7 trillion won ($2.8 billion) in investment from Tesla and Nvidia.
- Tesla will invest 1.1 trillion won and Nvidia 2.6 trillion won.
- The investment is for advanced chip substrate production lines for AI semiconductors.
- The facilities will be built in Sejong, South Korea.
Samsung Electro-Mechanics is set to receive a significant investment of 3.7 trillion won ($2.8 billion) from Tesla and Nvidia to bolster its production of advanced chip substrates, crucial for AI semiconductors. According to a report on Thursday, Tesla will contribute 1.1 trillion won and Nvidia 2.6 trillion won towards building new production lines in Sejong, South Korea. These facilities will focus on manufacturing flip-chip ball grid array (FC-BGA) substrates under long-term contracts. Samsung Electro-Mechanics already supplies Nvidia with substrates for its data center network equipment, and this expanded partnership is expected to lead to double-digit annual growth in supply volume to Nvidia.