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Samsung Electro-Mechanics gets $2.8 billion chip investment from Tesla, Nvidia, report says - Finance news and analysis from Global Banking & Finance Review
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Samsung Electro-Mechanics gets $2.8 billion chip investment from Tesla, Nvidia, report says

Published by Global Banking & Finance Review

Posted on October 22, 2026

1 min read

· Last updated: October 22, 2026

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Samsung Electro-Mechanics Gets $2.8B Investment from Tesla, Nvidia for AI Chips

Major Investment in Advanced AI Chip Substrate Facilities

SEOUL, Oct 22 (Reuters) - South Korea's Samsung Electro-Mechanics will receive investment valued at 3.7 trillion won ($2.8 billion) from Tesla and Nvidia to build facilities making advanced chip substrates, known as FC-BGA for AI semiconductors, the Maeil Business Newspapera reported on Thursday.

Breakdown of Investments by Tesla and Nvidia

Tesla will invest 1.1 trillion won and Nvidia 2.6 trillion won to build the production lines in the South Korean city of Sejong to supply the substrates under a long-term contract, the paper reported, citing industry sources.

Project Location and Scope

($1 = 1,322.4400 won)

Reporting and Editorial Credits

(Reporting by Jack Kim; Editing by Jacqueline Wong)

Key Takeaways

  • Tesla is projected to invest approximately 1.1 trillion won and Nvidia around 2.6 trillion won in the new substrate facilities, securing long‑term supply of advanced FC‑BGA substrates for AI semiconductors.
  • Samsung Electro‑Mechanics is concurrently investing heavily—about 4.27 trillion won at Sejong and 2.51 trillion won at its Vietnam site—to expand overall FC‑BGA capacity through mid‑2028.
  • The FC‑BGA substrate market is tightening due to high AI demand; long‑term customer commitments and pre‑payments are boosting visibility and mitigating risk for large‑scale CAPEX.

References

Frequently Asked Questions

Who is investing in Samsung Electro-Mechanics?
Tesla and Nvidia are investing a combined $2.8 billion in Samsung Electro-Mechanics.
What will the investment be used for?
The investment will be used to build facilities producing advanced chip substrates known as FC-BGA for AI semiconductors.
Where will the new chip production lines be located?
The new chip production lines will be built in Sejong, South Korea.
How much are Tesla and Nvidia each investing?
Tesla will invest 1.1 trillion won, and Nvidia will invest 2.6 trillion won.
What is FC-BGA?
FC-BGA stands for flip-chip ball grid array, an advanced chip substrate used in AI semiconductors.

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