🔥 Samsung Electro-Mechanics: Will Long-Term AI Substrate Supply Translate Into Results? - 2026.10.22

Well now, Onion is back! 🧅 This time, we’re looking at how far Samsung Electro-Mechanics can go with AI semiconductor substrates. The stock has been on a roller coaster lately, which makes it all the more exciting. 📈

NVIDIA and Tesla are both putting money in?

Here’s the key point: Samsung Electro-Mechanics has signed a long-term supply agreement with NVIDIA and Tesla for FC-BGA, an AI semiconductor package substrate ^[1]. According to reports, Tesla will invest 1,000,000,000,000 KRW, while NVIDIA will invest 2,600,000,000,000 KRW, with the funds going toward facilities related to the Sejong site ^[1]. Maeil Business Newspaper’s exclusive report covered the same development but gave a different combined total ^[4]. Since the figures vary slightly from one outlet to another, it’s worth checking the original reports again for the exact amounts. To Onion, the key takeaway is how this ties in with building out an AI chip substrate production line ^[4].

Long-term supply: where and how will they make it?

The plan is to expand domestic production facilities through joint investment with NVIDIA ^[2]. Several outlets reported that dedicated FC-BGA production lines will be set up in Sejong and Busan, with substrates for AI computing chips and data center networks to be supplied starting this year ^[2]. The Korea Economic Daily reported that the supply scale would be the largest ever ^[3]. “Largest ever” certainly makes you sit up and listen—well, of course it does! 🚀 But that’s how the reports described it; don’t take it to mean the company has confirmed a specific figure.

What’s the outlook for results?

Daehan Economic Daily reported that third-quarter operating profit would double ^[5]. However, this article is tied to analyst expectations, so it shouldn’t be taken as a confirmed earnings announcement from the company. The same article also compared LG Innotek, whose results were expected to stay flat ^[5]. In other words, AI is creating winners and losers in earnings. I haven’t spent 30 years watching the market for nothing—when comparisons like this come up, I always look first at what’s actually making money.

For now, the stock is still a supply-and-demand battle

The stock moved independently of the news. It plunged -18.52% on October 15, then climbed +3.04% on October 19 and +5.24% on October 21. The October 22 closing price was ₩1,144,000, down -2.05%. A video highlighted the mixed signals from foreign investors selling again and short selling and securities lending balances ^[6]. Confusing, right? Even good contract news may not keep the stock steady if supply and demand don’t provide support.

Onion sees a clear bullish scenario if the long-term supply story translates into actual results. But there are two questions on our minds right now: where the confirmed contract amount will ultimately land, given the differing figures reported by various outlets, and whether analysts’ earnings forecasts will show up in actual quarterly results. That’s all for today 🧅☕

📰 Reference News (5)

1

Samsung Electro-Mechanics to Receive 3.6 Trillion in Investment from Tesla and NVIDIA

네이버뉴스 · 2026.10.22

📰 View original

2

Samsung Electro-Mechanics and NVIDIA to Jointly Invest in AI Semiconductor Substrates… Long-Term Supply Starts This Year - Web Economy

네이버뉴스 · 2026.10.22

📰 View original

3

Samsung Electro-Mechanics to Supply AI Semiconductor Substrates to NVIDIA… Largest Scale Ever - The Korea Economic Daily

한국경제 · 2026.10.21

📰 View original

4

[Exclusive] Samsung Electro-Mechanics to Receive 3.7 Trillion in Investment from Tesla and NVIDIA… Building an AI Chip Substrate Line - Maeil Business Newspaper

매일경제 · 2026.10.22

📰 View original

📺 Reference Videos (1)

6

YouTube

[Samsung Electro-Mechanics Stock Outlook] (Pre-Market Check) Foreign Investors Selling Again, Rebound Also Faded… What If “Supply and Demand” Don’t Return? #SamsungElectroMechanicsStockOutlook #SamsungElectroMechanicsStrategy #SamsungElectroMechanics

▶AlexPlayzz·2026.10.20