Samsung Electro-Mechanics lands $2.8 billion chip substrate investment from Tesla and Nvidia

Samsung Electro-Mechanics just got two of the most demanding customers in tech to help pay for its factories. Tesla and Nvidia are putting a combined 3.7 trillion won, approximately $2.8 billion, into the South Korean company’s chip substrate business. The money is going into a very specific product: advanced flip-chip ball grid array substrates, known as FC-BGA. These are the parts AI semiconductors need, and they are increasingly hard to come by. Who is paying for what The split is lopsided. Nvidia is contributing 2.6 trillion won, while Tesla is putting in 1.1 trillion won. Tesla’s money is tied to substrates for its upcoming autonomous vehicles and its Optimus humanoid robots. The deal comes with a long-term FC-BGA supply contract covering AI chips from 2029 through 2033. Nvidia’s larger check is attached to a multi-year partnership. That arrangement targets substrates for AI accelerators and data center networking switches, the hardware that keeps massive AI clusters running and talking to each other. Nvidia publicly backed the announcement at its GTC 2026 event in Germany on October 21. Most of the funding will support dedicated production lines at Samsung Electro-Mechanics’ ...