Samsung Electro-Mechanics will supply NVIDIA with ABF package substrates for AI processors starting in 2026. The firm plans to expand its South Korean plants to meet rising demand. Separately, reports showed Samsung Foundry will raise Exynos 2700 wafer starts by over 10% using its second-generation 2nm process for better performance.

Samsung Electro-Mechanics has announced a partnership with NVIDIA to supply ABF package substrates for AI processors and networking switches, with production from 2026. Separately, reports say Samsung Foundry will raise Exynos 2700 wafer starts by over 10% on its second-generation 2nm process.

Samsung Electro-Mechanics (SEM) has announced a strategic partnership with NVIDIA to provide high-end artificial intelligence (AI) processors and high-speed networking switches using advanced ABF package substrates. The South Korean firm has said it will roll out production starting in 2026 and increase output to address the rising demand for AI computing equipment.

Separately, South Korean outlets Chosun and TheElec report that Samsung Foundry is preparing to raise production of its next-generation Exynos 2700 chip on its second-generation 2nm process. Together, the two developments could strengthen the Samsung group's position in AI and semiconductors.

Samsung to expand ABF substrate production for NVIDIA

Under the deal, SEM will supply ABF package substrates for NVIDIA's AI processors and high-speed networking switches. These substrates connect the components inside a chip package and help high-end computing systems meet their performance demands.

SEM will invest in expanding capacity at its Sejong and Busan plants in South Korea to meet NVIDIA's expected demand. The company expects supply to grow at a double-digit percentage rate every year from 2026. By 2028, production for NVIDIA is expected to account for a significant share of SEM's total substrate capacity.

SEM CEO Chang Duck-hyun said the partnership will help deliver high-quality components for NVIDIA's AI platforms. NVIDIA executive Debora Shoquist said the agreement would widen the company's supplier base and increase production capacity.

The deal is expected to strengthen SEM's position in the AI semiconductor market as demand for data centres and high-end computing grows.

Exynos 2700 production set to increase by over 10%

According to both Chosun and TheElec, Samsung is going to ramp up wafer-start volumes for the Exynos 2700 by over 10% compared to the Exynos 2600. The beginning of the semiconductor manufacturing process is called wafer starts.

Samsung Foundry's second-generation 2nm process, dubbed SF2P, is expected to be used by the Exynos 2700. A larger production volume may enable Samsung's System LSI business to ramp up its chip development efforts and provide its foundry business with an opportunity to test the manufacturing process.

The SF2P process includes a 12% performance improvement and a 25% power reduction, according to the reported specification. However, actual performance will depend on manufacturing yields, thermal performance, and real-world testing.

Samsung seeks to strengthen its semiconductor business

Exynos 2700 may also be a key player in Samsung's smartphone plans. The cost of memory is a growing concern for smartphone makers, making component costs more critical.

Future Galaxy S27 devices could feature their own flagship processors, which may help Samsung cut down on third-party chip suppliers such as Qualcomm. However, the actual list of final processors and deployment plans are not officially announced.

The NVIDIA substrate tie-up, plus the reported plans to expand Exynos 2700 production, points to Samsung's new thrust to boost its semiconductor business. They will impact the long term depending on manufacturing execution, customer demand and the ability to meet competitive performance at scale.