Tesla and Nvidia Invest 3.7 Trillion Won in Samsung Electro-Mechanics AI Chip Substrate Expansion

Tesla and Nvidia will invest 1.1 trillion won and 2.6 trillion won respectively, totaling approximately 3.7 trillion won, to support Samsung Electro-Mechanics in expanding its next-generation FC-BGA substrate production facilities. Samsung Electro-Mechanics will expand a dedicated production line for Tesla at its Sejong factory, with the substrates produced being used for Tesla's autonomous vehicles and the humanoid robot Optimus's AI chips. The related long-term supply agreement will last from 2029 to 2033, spanning five years. Nvidia plans to invest in the expansion projects of Samsung Electro-Mechanics' Sejong and Busan factories for the production of AI computing chips and data center network substrates. Samsung Electro-Mechanics aims to complete the construction of the factory by the end of 2027, start mass production in the second half of 2028, and begin supplying Tesla in 2029. FC-BGA is a key packaging substrate for high-performance chips such as AI accelerators, GPUs, and CPUs. This collaboration is expected to help Samsung Electro-Mechanics expand its high-end substrate capacity and secure long-term customer demand.

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