Press release 📈 Stocks 🌍 GLOBAL

Samsung Electro-Mechanics Secures Multi-Year NVIDIA ABF Substrate Contract

Samsung Electro-Mechanics and NVIDIA partner to boost AI infrastructure, with a multi-year supply agreement for ABF substrates beginning in 2026 and joint facility expansions in South Korea.

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009150.KS
Bullish 🤖 65%
📆 Mid-term 🌍 KR · Explicit

Samsung Electro-Mechanics has entered a multi-year supply agreement with NVIDIA to provide advanced ABF substrates starting in 2026. This partnership involves a joint investment to expand production capacity at facilities in Sejong and Busan, positioning the company to capture significant demand in the AI hardware market.

Catalysts
  • ▲ Multi-year supply agreement with NVIDIA starting in 2026
  • ▲ Joint investment in Sejong and Busan production facilities
Risk Factors
  • ▼ Execution risk regarding the expansion of production facilities
  • ▼ Dependency on NVIDIA's long-term AI hardware roadmap
▼ Show FAQ (2) ▲ Hide FAQ
When does the supply agreement begin?

The supply agreement is scheduled to commence in 2026.

Where will the new production facilities be located?

The production facilities are being expanded in Sejong and Busan.

NVDA
Bullish 🤖 65%
📆 Mid-term 🌍 US · Explicit

NVIDIA is securing its supply chain for next-generation AI processors and high-speed networking solutions by partnering with Samsung Electro-Mechanics for dedicated ABF substrate production. This strategic move is designed to alleviate ongoing supply chain constraints that have historically hindered the rapid scaling of AI infrastructure.

Catalysts
  • ▲ Securing dedicated ABF substrate supply for AI processors
  • ▲ Expansion of high-speed networking solution production capacity
Risk Factors
  • ▼ Potential delays in the ramp-up of substrate production facilities
  • ▼ Supply chain bottlenecks in the broader semiconductor ecosystem
▼ Show FAQ (2) ▲ Hide FAQ
Why is NVIDIA investing in substrate production?

To alleviate supply chain constraints for its next-generation AI processors and high-speed networking solutions.

What is the primary benefit of this partnership?

It ensures a stable supply of advanced substrates necessary for scaling AI infrastructure.

🎯 Key Takeaways

  • Samsung Electro-Mechanics will supply critical ABF substrates to NVIDIA starting in 2026.
  • Joint investments in Sejong and Busan facilities aim to alleviate global AI supply chain bottlenecks.
  • The partnership secures long-term revenue growth for Samsung Electro-Mechanics through high-demand AI hardware components.

📝 Executive Summary

Samsung Electro-Mechanics has entered a strategic partnership with NVIDIA to supply advanced ABF substrates starting in 2026. The deal includes joint investments to expand production capacity in Sejong and Busan, aiming to stabilize the supply chain for next-generation AI processors and high-speed networking hardware.

❓ FAQ

What is the significance of the Samsung-NVIDIA partnership?

The partnership secures a stable supply of advanced ABF substrates for NVIDIA's AI processors, helping to mitigate supply chain constraints for high-performance computing infrastructure.

When will the supply agreement take effect?

The multi-year supply agreement is scheduled to commence in 2026, supported by expanded production facilities in South Korea.