Tesla and Nvidia reportedly invest in Samsung Electro-Mechanics to build AI chip FC-BGA production lines

According to Korean media reports, Tesla and Nvidia will invest 1.1 trillion KRW and 2.6 trillion KRW respectively to cooperate with Samsung Electro-Mechanics in building next-generation flip-chip ball grid array (FC-BGA) substrate production facilities for artificial intelligence (AI) chips. Nvidia and Tesla decided to invest in Samsung Electro-Mechanics factories because FC-BGA, the next-generation substrate for AI chips, is becoming a new supply chain bottleneck. Market evaluations believe that this cooperation will help Samsung Electro-Mechanics consolidate its position as a core supplier in the next-generation AI substrate market.