Samsung Electro-Mechanics to supply Nvidia with substrates for AI chips — Korea Herald
In South Korea, Samsung Electro-Mechanics has signed a multi-year agreement with Nvidia to supply advanced semiconductor substrates for artificial intelligence processors and high-speed networking chips. The companies will also jointly invest in expanding production in Sejong and Busan, while deliveries are expected to begin this year, Korea Herald reports.
Expansion of production capacity
Substrates provide electrical connections between semiconductor chips and printed circuit boards and are a component of high-performance computing systems. Samsung Electro-Mechanics will initially supply Nvidia from its existing facilities in South Korea and later plans to increase capacity through plant upgrades and new facilities.
Nvidia said that arrangements with Samsung Electro-Mechanics, Japan’s Ibiden and Taiwan’s Unimicron will make it possible to increase substrate production capacity for its products by 2.5 times over the next three years. By 2028, Nvidia-related production is expected to account for a substantial share of Samsung Electro-Mechanics’ annual packaging-substrate capacity. The volume of deliveries and the financial terms of the agreement were not disclosed.
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Samsung Electro-Mechanics’ package solutions division generated 771.6 billion won, or $583 million, in revenue in the second quarter — 37% more than a year earlier. Growth was driven by demand for advanced substrates used in AI accelerators and servers.
Sensor systems for robots
LG Innotek is simultaneously developing cooperation with Nvidia in robotics. At GTC Berlin, the company presented a 3-megapixel camera module and a multimodal machine-vision system featuring Nvidia Holoscan Sensor Bridge technology. It enables cameras and other sensors to send data directly to AI computing systems, accelerating robots’ information processing.
LG Innotek plans to expand work on visual perception systems for humanoid robots and robotic arms. The company intends to showcase next-generation solutions at CES and GTC in 2027. Unlike Samsung Electro-Mechanics’ agreement, LG Innotek did not disclose confirmed Nvidia procurement volumes or the contract value.
