IN Brief:
- Samsung Electro-Mechanics will supply ABF package substrates to NVIDIA through a multi-year agreement beginning in 2026.
- Dedicated production lines and facilities are planned at Sejong and Busan, building on available Korean manufacturing capacity.
- NVIDIA's projected 2.5-fold substrate capacity expansion spans Samsung Electro-Mechanics, IBIDEN, and Unimicron rather than Samsung alone.
Samsung Electro-Mechanics has agreed to supply NVIDIA with advanced semiconductor package substrates, bringing existing South Korean production capacity into the AI chip manufacturer’s supply chain and supporting further expansion at Sejong and Busan. The multi-year arrangement covers ABF substrates used in computing devices and high-speed networking equipment, with deliveries scheduled to begin in 2026.
The companies plan dedicated manufacturing capacity and facility upgrades at Samsung Electro-Mechanics’ Korean operations. Samsung says the volume supplied to NVIDIA is expected to rise at a double-digit annual rate, with the customer projected to account for a significant portion of its total annual package substrate production capacity by 2028. Neither company has disclosed a specific committed number of substrates or the value of the agreement.
NVIDIA has positioned the partnership within a wider expansion involving substrate manufacturers in several countries. It expects agreements with Samsung Electro-Mechanics, Japan’s IBIDEN, and Taiwan’s Unimicron Technology Corporation to support an aggregate 2.5-fold increase in substrate capacity for NVIDIA products over the next three years. That multiplier is a target across the group of partners and must not be applied to Samsung Electro-Mechanics on its own.
Package substrates provide the physical and electrical connection between semiconductor dies and the circuit boards carrying them. They contain finely patterned conductors that distribute power and carry signals through multiple layers, while supporting the package mechanically during assembly and operation. Their manufacturing quality affects whether a processor can be connected and operated as intended, even if the semiconductor dies themselves meet specification.
ABF, or Ajinomoto Build-up Film, is a dielectric material used in advanced package substrates. Fine conductive patterns and insulating layers are built up to accommodate dense interconnections between the chip package and other circuitry. Large AI accelerators and network switches place demanding requirements on conductor geometry, signal integrity, electrical power delivery, and thermal and mechanical stability.
As packages become larger, keeping substrate layers aligned and controlling deformation become more difficult. Materials expand by different amounts as their temperature changes, while manufacturing operations introduce additional stresses. Excessive warpage can interfere with assembly connections or reduce production yield even when the substrate’s individual conductors have been formed correctly.
Samsung Electro-Mechanics identifies ultra-fine circuit patterning, substrate flatness, and advanced warpage control as important capabilities for the planned supply. These manufacturing characteristics must be maintained across the larger dimensions and more complex structures associated with next-generation AI computing packages. The agreement does not disclose the individual processor models or detailed package dimensions to which the substrates will be fitted.
The partnership also extends to package power integrity. High-performance computing devices draw substantial electrical current, often changing demand rapidly as workloads vary. Resistance and inductance in the connections supplying power can contribute to voltage fluctuations, so designers increasingly consider where charge-storage components can be positioned relative to the computing die.
Samsung Electro-Mechanics intends to draw on its experience in multilayer ceramic capacitors and silicon capacitors when developing package substrates with embedded passive components. Integrating capacitors into the substrate can shorten electrical paths compared with some board-level arrangements, although their performance still depends on the complete distribution network, package design, and operating conditions.
Embedding such devices adds further manufacturing requirements. Components must be incorporated without compromising the routing space needed for signals and power, and they must withstand package assembly processes, mechanical stress, and operating temperatures. The company describes its materials and microfabrication capabilities as a foundation for this work, not evidence that every NVIDIA substrate under the agreement will contain embedded capacitors.
The supply arrangement covers NVIDIA computing chipsets as well as high-speed network switches. Networking silicon faces its own demanding signal routing requirements because data must move between computing nodes at high rates. Substrate design must therefore balance electrical transmission, power distribution, manufacturability, and package reliability across different device categories.
Beyond substrates, NVIDIA is working with other suppliers to expand semiconductor packaging, testing, and optical-engine production. Its published programme includes capacity expansion with Amkor Technology, additional testing supported by King Yuan Electronics, and optical-engine production involving Siliconware Precision Industries. These are separate capacity initiatives; they should not be confused with the Samsung Electro-Mechanics substrate agreement.
Existing Korean capacity provides a near-term source of substrates, while planned lines and factory improvements are intended to support greater volume later in the agreement. The capacity outlook remains dependent on completing manufacturing investment and achieving acceptable yields. NVIDIA’s broader announcement includes forward-looking production targets rather than confirmed future output.
The agreement adds Samsung Electro-Mechanics to an existing group of advanced substrate suppliers as demand for more complex chip packages rises. Its immediate significance is a contracted manufacturing relationship and the planned expansion at Sejong and Busan; the eventual production contribution will depend on how quickly the new facilities and processes reach qualified output.
