Report: Samsung Electro-Mechanics’ $2.8B Deal

According to reports, Samsung Electro-Mechanics has secured a total of KRW 3.7 trillion (approximately US$2.8 billion) in chip-related investments from Tesla and Nvidia to expand advanced semiconductor substrate production in South Korea.

Sources familiar with the matter said Tesla will invest KRW 1.1 trillion, while Nvidia will contribute KRW 2.6 trillion to establish production lines in Sejong, South Korea. Under long-term supply agreements, the facilities will manufacture advanced semiconductor substrates for the two companies.

To meet rising demand for artificial intelligence (AI) and high-performance computing (HPC), Samsung Electro-Mechanics is accelerating its capacity expansion. Last month, the company announced plans to invest KRW 4.27 trillion in its flip-chip ball grid array (FC-BGA) production facilities in Sejong and KRW 2.51 trillion in semiconductor packaging substrate manufacturing equipment in Vietnam.

Including additional investment in its Vietnam facility expansion, the company's total planned expenditure is expected to exceed KRW 8 trillion, underscoring its commitment to strengthening advanced packaging substrate production capacity amid growing demand for AI and HPC applications.