Tesla and Nvidia invest $2.8 billion in Samsung Electro-Mechanics for AI chips

All costs are permitted when it comes to getting hold of the precious components linked to artificial intelligence. Tesla and nVidia will thus invest together to the tune of 2.8 billion dollars in Samsung Electro-Mechanics, to secure the supply of electronic components that have become a scarce and expensive commodity in recent months, thanks to the servers of the AI giants that monopolize production for their data centers.

 

Specialized factories for FC-BGA substrates This is what the Korean daily Maekyung reports, specifying that Tesla’s share amounts to 830 million dollars (the balance of nearly 2 billion therefore logically falling to nVidia) and that this money is being invested in the construction of brand-new production lines in the city of Sejong, in South Korea. These factories are therefore specialized in the manufacture of FC-BGA (Flip-Chip Ball Grid Array) substrates, essential for the proper functioning of AI chips.

 

Autonomous cars and Optimus robots in the crosshairs In exchange for this substantial financial contribution, Tesla will receive between 2029 and 2033 these famous components for the manufacture of its future autonomous cars as well as for the Optimus humanoid robots. By locking in mass production several years before it actually begins, the carmaker is adopting the strategy already followed by nVidia, which amounts to directly financing the critical capacity of subcontractors rather than suffering the random availability of components on the market.