Market Chatter: Nvidia, Tesla to Invest $2.80 Billion in Samsung Electro-Mechanics

MT Newswires Live10-22 16:25

Nvidia (NVDA) and Tesla (TSLA) plan to invest a combined 3.7 trillion South Korean won ($2.80 billion) in Samsung Electro-Mechanics to expand production of advanced semiconductor substrates, Reuters reported Thursday, citing South Korea's Maeil Business Newspaper.

The investment comes as Samsung Electro-Mechanics enters a multi-year supply agreement with Nvidia for advanced package substrates used in artificial intelligence processors and high-speed networking switches. Deliveries are expected to begin in 2026, with dedicated production lines planned at facilities in Sejong and Busan, South Korea, Samsung Electro-Mechanics said.

Samsung Electro-Mechanics expects substrate volumes supplied to Nvidia to grow at a double-digit annual rate, with production allocated to the chipmaker projected to account for a significant share of its annual capacity by 2028, the company said Wednesday.

Tesla did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment