Samsung Electro-Mechanics and Nvidia partner on ABF substrates for AI chips

Samsung Electro-Mechanics and Nvidia have announced a strategic partnership to expand production and supply of ABF package substrates. These components sit underneath the high-performance processors and networking switches that power AI infrastructure. The deal was announced on October 21, 2026. It targets one of the least glamorous and most stubborn constraints in the AI buildout: the materials that hold advanced chips together. What the two companies agreed to Under the arrangement, Samsung Electro-Mechanics (SEMCO) and Nvidia intend to jointly invest in dedicated manufacturing lines. Those lines will be located at SEMCO’s facilities in Sejong and Busan, South Korea. Production is scheduled to start in 2026, with supply to Nvidia expected to begin that year. The agreement anticipates supply volumes growing at a double-digit annual rate over several years. ABF stands for Ajinomoto Build-up Film. Think of an ABF substrate as the foundation a chip is mounted on, plus the wiring that connects the chip to everything around it. For AI accelerators and high-speed networking switches, these substrates must handle enormous data flows and tight tolerances. A deeper seat in Nvidia’s supply ...