Tesla AI5 chip ignites Samsung-LG race for ABF substrates and robot parts
Tags Hardware · AI · Infrastructure
Tesla's next-generation AI5 chip is driving competition between Samsung Electro-Mechanics and LG Innotek for ABF (Ajinomoto Build-up Film) substrate supply, as both companies seek to enter Tesla's AI semiconductor supply chain. LG Innotek is targeting ABF-based FC-BGA substrate orders for Tesla's AI4 chips, while Samsung Electro-Mechanics is positioned to supply ABF substrates for Tesla AI chips via Samsung Foundry. Both companies are also pushing into the humanoid robot supply chain, with LG Innotek unveiling a 'Dream Factory' for PC CPU ABF substrates and server market expansion. Samsung is supplying eyes (camera modules) for Tesla's Optimus humanoid robot. The competition reflects the broader convergence of AI chip manufacturing and advanced packaging, where ABF substrates have become a critical bottleneck.
Technical significance
The Samsung-LG race for Tesla's ABF substrate orders highlights how advanced packaging has become as critical as the chip itself in the AI hardware supply chain. ABF substrates are a known bottleneck in high-performance computing, and Tesla's AI5 chip demand is intensifying competition for this constrained resource. The convergence of AI chip manufacturing and humanoid robot supply chains (both companies supplying Optimus components) suggests that the physical AI hardware ecosystem is consolidating around a small number of vertically integrated suppliers.