Tesla and Nvidia reportedly fund Samsung Electro-Mechanics chip-substrate expansion

Why it matters

The reported arrangements would give Tesla and Nvidia dedicated or priority access to additional AI-chip substrate capacity. Tesla's five-year supply agreement runs from 2029 to 2033, while Nvidia's investment is expected to support substrates for data-center networking and AI computing chips.

Key facts

• 1Samsung Electro-Mechanics is expected to receive 3.7 trillion won ($2.8 billion) for FC-BGA substrate facilities in South Korea. gurufocus.com
• 2The planned contributions are 1.1 trillion won from Tesla and about 2.6 trillion won from Nvidia. investmentmonitor.ai
• 3Tesla's supply agreement runs for five years from 2029 to 2033 and provides priority access to medium- and long-term output. investmentmonitor.ai
• 4Construction is expected to conclude by the end of 2027, followed by equipment installation and test production in the first half of 2028. investmentmonitor.ai
• 5Commercial production is scheduled for the second half of 2028, with Tesla deliveries due to begin in 2029. investmentmonitor.ai

Open questions

• The investment and supply arrangements are reported or expected rather than formally confirmed in the materials.
• The materials give conflicting dollar-denominated allocations between Tesla and Nvidia, while the won-denominated amounts are consistent in the detailed reports.
• The investment amount attributed to Nvidia was disclosed at GTC 2026 but was not publicly detailed, according to one material.