Mass production could start in Q2, boosting its Big Tech partnerships
CI of Samsung-Electro-Mechanics
Samsung Electro-Mechanics is reported to be supplying key semiconductor substrates for Nvidia’s AI inference-dedicated chip, the “Groq(Groq)3 Language Processing Unit(LPU).” The company is seen as strengthening its position within Nvidia’s AI semiconductor ecosystem by securing its status as a leading supplier.
According to the relevant industry on April 10, Samsung Electro-Mechanics has secured first-vendor (primary supplier) status for the “Flip-Chip Ball Grid Array(FC-BGA)” used in the “Groq3 LPU.” A prospect is emerging that mass production could begin as early as the second quarter of this year.
The “Groq3 LPU” is an inference accelerator chip to be installed in Nvidia’s next-generation AI semiconductor platform “Vera Rubin.” It will be manufactured on a consignment basis by Samsung Electronics’ foundry, based on a 4-nanometer(nm) process. The “FC-BGA” is a high-density package substrate that connects a semiconductor chip to a main substrate with fine bumps, and is a key component used in AI servers and high-performance computing(HPC).
Samsung Electro-Mechanics previously entered the supply chain by supplying “FC-BGA” for Nvidia’s “NVSwitch” chip. With its supply expanding to include the “Groq3 LPU,” the company has broadened its footprint in Nvidia’s AI semiconductor ecosystem. In addition, it has supplied server-grade “FC-BGA” to AMD as well.
Expectations for improved performance are also rising in the market. Samsung Electro-Mechanics is reported to have recently raised FC-BGA selling prices by about 10% for some customers. According to FnGuide, Samsung Electro-Mechanics’ forecast annual revenue for this year is 12.87 trillion won, and its forecast operating profit is 1.4 trillion won (approximately $933 million). Shinhan Investment Corp. said, “Amid a continued favorable environment for substrates, expectations are growing for an expansion in sales of high value-added products and higher supply unit prices,” adding, “It has entered a valuation level-up section compared with global peers.”
Samsung Electro-Mechanics CEO Jang Deok-hyeon suggested a supplier-favorable situation at last month’s shareholders’ meeting, saying, “Demand for FC-BGA for servers and data centers exceeds production capacity by more than 50%.” At “CES 2026” early this year, he forecasts, “As investments in AI servers and data centers expand centered on global big tech, demand for FC-BGA is increasing significantly,” and added, “From the second half of this year, it will be at a level close to virtually full operation.”
Kim Eun-jin
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