Reported Investment of 3.7 Trillion Won to Expand Samsung Substrate Capacity for Tesla and Nvidia
Key Facts
Reuters, citing Maeil Business Newspaper and industry sources, reported that Samsung Electro-Mechanics will receive total investments of 3.7 trillion won, equivalent to about $2.8 billion, to build semiconductor substrate facilities. The report dates to October 22, 2026, and attributed the funding to Tesla and Nvidia. According to details the report cited from the newspaper, Tesla’s contribution is 1.1 trillion won, compared with 2.6 trillion won from Nvidia. But Samsung and Nvidia officially announced a partnership and joint investment to expand facilities without disclosing Nvidia’s amount. The total and its division between the two companies therefore remain figures reported from industry sources, rather than a direct announcement by either company.
The partnership announced by Samsung and Nvidia centers on expanding production of ABF advanced packaging substrates in Sejong and Busan. The companies said the collaboration aims to support supplies of advanced substrates and ease bottlenecks in the AI infrastructure supply chain. These facilities have a direct link to high-performance computing equipment, as the substrates are used to connect chips to boards operating in AI systems. The official announcement did not include a value for Nvidia’s investment, although the Maeil report cited by Reuters listed a contribution of 2.6 trillion won. The total of 3.7 trillion won combines that contribution with the amount attributed to Tesla in the same report.
For Tesla, the Maeil report, as cited by Reuters from industry sources, said it would allocate 1.1 trillion won of the reported total investment. The report said the arrangement includes a dedicated production line at the Sejong plant and a five-year supply agreement, from 2029 to 2033. Neither company issued a direct announcement confirming these details in the available information. The reported schedule places the supply period after the target date for the start of commercial production at the Sejong expansion, set for September 2028. The dedicated line and contract period remain part of the newspaper report, while the official announcement published with Nvidia addressed joint investment and the expansion of facilities.
Samsung says FCBGA substrates connect high-performance semiconductors, including AI accelerators, graphics processing units and central processing units, to the mainboard, and also carry electrical signals and power. This use makes substrate production a key stage in connecting processors to the hardware systems that run them. The company said customer funding support and guarantees of medium- and long-term volumes help reduce investment risks in facilities and ensure operating rates. This mechanism provides context for linking production capacity expansion to customers’ needs and volume commitments. In the Nvidia partnership, Samsung said the collaboration aims to support supplies of advanced substrates and help ease AI infrastructure bottlenecks.
Samsung set the investment period for the Sejong expansion from September 2026 through May 2028, and said commercial production is targeted to begin in September 2028. This means facility spending will extend for nearly two years before the announced start of commercial production, according to the schedule published by the company. These dates are part of the announced expansion plan, while the newspaper report lists Tesla supply from 2029 to 2033. In trading on October 22, 2026, Samsung Electro-Mechanics shares rose 3.08% at 9:35 a.m., and their gain during the session reached 5.65%, while the KOSPI was down more than 1%. Chosun Biz reported that the shares rose 36,000 won from the previous session, though these figures alone do not allow a broader conclusion about the market reaction.