Tesla and Nvidia Invest $2.8 Billion in Samsung Electro-Mechanics

Samsung Electro-Mechanics will receive a combined investment of 3.7 trillion won ($2.8 billion) from Tesla and Nvidia to construct production facilities for advanced chip substrates. The funding focuses on the production of Flip-Chip Ball Grid Array (FC-BGA) substrates, which are essential components for AI semiconductors.

According to industry sources cited by the Maeil Business Newspaper, Nvidia will provide 2.6 trillion won of the total, while Tesla will contribute 1.1 trillion won. The companies intend to secure the resulting substrates through a long-term supply contract.

The new production lines will be located in Sejong, South Korea. This partnership aims to scale the manufacturing of high-performance substrates to meet the growing demand for AI-driven hardware.