According to TrendForce, Samsung Electro-Mechanics has signed a long-term Flip Chip Ball Grid Array (FC-BGA) substrate supply agreement with Tesla and will expand dedicated production lines at its Sejong factory.
Reports state the five-year agreement covers substrates intended for AI chips deployed in Tesla’s electric vehicles and Optimus humanoid robots. In return, Tesla will fund approximately KRW 1.1 trillion (equivalent to roughly RMB 5.549 billion under current exchange rates) for Samsung Electro-Mechanics’ capacity expansion.
The FC-BGA substrate production facility at Samsung’s Sejong factory is scheduled to be completed by the end of 2027. Equipment installation and trial runs are planned for the first half of 2028, with mass production kicking off in the second half and deliveries expected to commence in 2029.
Meanwhile, NVIDIA is collaborating with key suppliers to expand global substrate capacity. Through a series of supply agreements, the firm aims to raise its total IC substrate capacity to 2.5 times the current level within the next three years.
It is reported that NVIDIA has paid billions of US dollars in advance to Japan’s IBIDEN to reserve production capacity. IBIDEN’s Ohno factory plans to triple its capacity, with new output slated for gradual release starting in Q1 2028. Samsung Electro-Mechanics is also ramping up capacity at its Sejong and Busan plants. By 2028, NVIDIA is projected to account for a substantial portion of Samsung Electro-Mechanics’ annual packaging substrate capacity.
(Reprinted from https://news.eccn.com/）