Samsung Electro-Mechanics has entered a strategic partnership with NVIDIA to expand production of ABF package substrates for AI semiconductors, with deliveries scheduled to begin in 2026. Under the agreement, the companies will jointly invest in dedicated manufacturing capacity to support NVIDIA’s demand for advanced substrates used in AI computing and data center networking. Samsung Electro-Mechanics expects annual supply volumes to grow at a double-digit rate over multiple years from 2026. The company will establish dedicated production lines at its manufacturing sites in Sejong and Busan, South Korea. The agreement covers substrates for NVIDIA compute chipsets and high-speed networking switches used for chip-to-chip connectivity in data centers. By 2028, production allocated to NVIDIA is projected to account for a significant portion of Samsung Electro-Mechanics’ total annual package substrate capacity, the company said. Larger package substrates and embedded components increase manufacturing complexity. Fine circuit patterning is needed to limit signal loss, while warpage control and substrate flatness are important for production yield and reliability. Power delivery is another challenge for next-generation AI processors. Embedding passive components, including multilayer ceramic capacitors (MLCCs) and silicon capacitors, within package substrates can help manage electrical noise and power efficiency. Samsung Electro-Mechanics said its substrate manufacturing capabilities and expertise in MLCC and silicon capacitor technologies support its efforts to develop substrates for advanced AI packages. “It is a great honor to join NVIDIA, a global leader driving AI innovation, as a key infrastructure partner. By combining our advanced FC-BGA manufacturing capabilities with our differentiated expertise in high-reliability MLCC technologies, Samsung Electro-Mechanics will fully leverage its strengths as a comprehensive solutions provider to ensure that NVIDIA’s AI platforms are delivered to the market on time with the highest levels of performance and quality,” said Duck-Hyun Chang, president and CEO of Samsung Electro-Mechanics, in a press statement. “The pace of the AI infrastructure buildout requires us to expand manufacturing capacity on a global scale. Our work with Samsung Electro-Mechanics broadens our network of substrate partners and adds manufacturing capacity to help us scale production and deliver the accelerated computing platforms our customers need,” said Debora Shoquist, executive vice president of operations at NVIDIA. The post Samsung Electro-Mechanics and NVIDIA Ink ABF Substrate Supply Agreement appeared first on EE Times Asia .