Tesla and Nvidia are investing a combined ₩3.7 trillion, or approximately $2.8 billion, into the chip substrate business of Samsung Electro-Mechanics. This capital will fund the production of advanced flip-chip ball grid array (FC-BGA) substrates, which are essential for AI semiconductors, autonomous vehicles, and humanoid robots.
The investment is divided unevenly: Nvidia contributes ₩2.6 trillion for a multi-year partnership focused on AI accelerators and data center networking switches. Tesla provides ₩1.1 trillion to secure supply for its future autonomous vehicles and Optimus robots, covering the period from 2029 through 2033.
The funding supports new production lines at the Samsung Electro-Mechanics facility in Sejong and capacity expansion in Busan. These projects are part of a broader ₩4.27 trillion investment program by the manufacturer to meet the rising demand for high-end substrates.
Construction at the sites is scheduled for completion by the end of 2027. Mass production is expected to begin in the second half of 2028, with the first supplies for Tesla slated for delivery in 2029.
