Tesla and Nvidia are set to invest KRW 1.1 trillion and KRW 2.6 trillion, respectively, in a collaborative effort with Samsung Electro-Mechanics. This partnership aims to construct a state-of-the-art FC-BGA packaging substrate production line tailored for AI semiconductors. Tesla has inked a five-year long-term supply agreement (2029-2033) with Samsung Electro-Mechanics. The investment will be allocated towards building a specialized production line at the Sejong plant, ensuring a steady supply of AI chip substrates for autonomous electric vehicles and the humanoid robot Optimus. The production line is anticipated to be finalized by the end of 2027, with equipment setup and trial production scheduled for the first half of 2028, and full-scale mass production expected to commence in the latter half of 2028.
On the other hand, Nvidia's investment will focus on expanding dedicated production lines at Samsung Electro-Mechanics' Sejong and Busan plants. These expansions will cater to the manufacturing of AI computing chips and network substrates essential for data centers. Presently, FC-BGA has become a critical bottleneck in the AI supply chain, with high-end production capacity highly concentrated among a few players. Samsung Electro-Mechanics is stepping up its efforts to catch up with leading manufacturers, and this collaboration will further cement its status as a pivotal supplier in the high-end AI substrate market.
Meanwhile, with the swift advancement of autonomous driving, humanoid robots, and other related fields, the market demand for FC-BGA is projected to surge dramatically.