Joint Investment to Expand Dedicated Production Facilities in Sejong and Busan
Multi-Year Supply Agreement Commencing in 2026
Samsung Electro-Mechanics has officially announced a strategic collaboration with NVIDIA aimed at fortifying the global supply chain for AI semiconductors and propelling the development of advanced AI infrastructure.
Samsung Electro-Mechanics and NVIDIA Announce Strategic Partnership to Supply ABF Substrates
The strategic agreement entails a collaborative investment in the augmentation of dedicated manufacturing operations for ABF package substrates utilized in AI semiconductors.
Samsung Electro-Mechanics anticipates initiating shipments of these substrates to NVIDIA starting in 2026.
This partnership is poised to afford NVIDIA a reliable stream of advanced package substrates vital for the large-scale production of its AI chipsets, thereby mitigating supply chain impediments within the swiftly growing global AI infrastructure market.
For Samsung Electro-Mechanics, this agreement signifies a remarkable opening to expedite its foray into the lucrative AI semiconductor package substrate sector, characterized by formidable technological entry barriers, whilst fortifying its competitive stature on a global scale.
Dedicated Production Facilities in Sejong and Busan to Support Multi-Year Supply of AI Processor and Networking Substrates
To ensure punctual delivery of ABF substrates, Samsung Electro-Mechanics will establish specialized production lines at its principal manufacturing hubs in Sejong and Busan, South Korea.
The supply agreement encompasses advanced package substrates not only for NVIDIA’s computational chipsets, but also for high-speed networking switches that facilitate rapid chip-to-chip communication within data centers. Deliveries are slated to commence in 2026.
Over the course of several years, commencing in 2026, the volume of package substrates Samsung Electro-Mechanics is slated to furnish to NVIDIA is anticipated to increase at a remarkable double-digit annual growth rate.
By 2028, production allocated to NVIDIA is forecasted to constitute a significant segment of Samsung Electro-Mechanics’ total annual package substrate output.
Advanced Packaging Technologies: Larger Substrates and Embedded Passive Components
As the demand for larger package substrates integrating advanced technologies intensifies, the intricacy of manufacturing escalates dramatically.
The precision of ultra-fine circuit patterning is critical for minimizing signal degradation, while sophisticated warpage management and substrate flatness techniques are paramount for sustaining manufacturing yields and ensuring durability.
Specifically, next-generation AI processors necessitate sophisticated power regulation solutions to curtail electrical disturbances arising from high-speed computations and to optimize energy efficiency.
To fulfill these rigorous standards, advanced packaging methodologies embed passive components — including multilayer ceramic capacitors (MLCCs) and silicon capacitors — directly within the substrate matrix.
Samsung Electro-Mechanics possesses superior substrate microfabrication expertise tailored to meet the stringent specifications of both current and forthcoming semiconductor packages, bolstered by its unparalleled proficiency in MLCC and silicon capacitor technologies.
By amalgamating these foundational technologies, Samsung Electro-Mechanics aims to provide high-performance, robust package substrate solutions that are finely attuned to the shifting demands of AI computational frameworks.
Duck-Hyun Chang, President and CEO of Samsung Electro-Mechanics, remarked, “Joining forces with NVIDIA, a global pioneer in AI innovation, as a pivotal infrastructure ally is a tremendous privilege.”
He further stated, “By harnessing our advanced FC-BGA manufacturing strengths alongside our distinctive MLCC expertise, Samsung Electro-Mechanics is well-positioned as a comprehensive solutions provider, ensuring NVIDIA’s AI platforms reach the market punctually and with unparalleled performance and quality.”
Debora Shoquist, Executive Vice President of Operations at NVIDIA, expressed, The rapid expansion of AI infrastructure necessitates an increase in manufacturing capabilities on a global scale.
Our partnership with Samsung Electro-Mechanics enhances our substrate partner network and augments our manufacturing capacity, enabling us to scale production and deliver the accelerated computing platforms our clients require.
Source link: Finance.yahoo.com.
