---
title: "Nvidia pays Ibiden, Samsung Electro-Mechanics and Unimicron for substrate capacity; AT&S fell 18.6%"
description: "Nvidia is paying Ibiden, Samsung Electro-Mechanics and Unimicron to reserve production of the substrates that sit under its AI chips. AT&S, the Austrian substrate maker absent from Nvidia's list, is building the same capacity on AMD's and Marvell's commitments, and its stock sits 43% below its high with half-year results due on November 5."
publisher: "The Inference"
section: "Chips"
published: 2026-10-24T16:22:02.342Z
modified: 2026-10-24T16:22:02.342Z
canonical: https://theinference.org/article/nvidia-pays-ibiden-samsung-electro-mechanics-and-unimicron-for-substrate-capacity-at-s-fell-18-6
language: en
keywords: "Nvidia, AT&S, Chip Packaging, Semiconductors, Samsung Electro Mechanics"
---

# Nvidia pays Ibiden, Samsung Electro-Mechanics and Unimicron for substrate capacity; AT&S fell 18.6%

> Nvidia is paying Ibiden, Samsung Electro-Mechanics and Unimicron to reserve production of the substrates that sit under its AI chips. AT&S, the Austrian substrate maker absent from Nvidia's list, is building the same capacity on AMD's and Marvell's commitments, and its stock sits 43% below its high with half-year results due on November 5.

## An 18.6% day that named no company news

[AT&S](https://theinference.org/markets/companies/at-s-austria-technologie-systemtechnik), Austria's listed maker of high-end IC substrates, the layered circuit boards a processor sits on and connects through [2], fell 18.6% in Vienna on October 22, the biggest drop in the ATX, Vienna's blue-chip index, which lost 4.6% [1]. [The day's market report](https://www.ad-hoc-news.de/boerse/news/marktberichte/atx-closes-4-6-percent-lower-as-at-und-s-leads-tech-selloff/70394956) blamed renewed doubts about AI spending and a Wall Street technology rout, with Nasdaq futures down nearly 2%, and named nothing from the company [1].

## Nvidia now pays to reserve its suppliers

The day before, at its GTC Berlin event, [Nvidia](https://theinference.org/markets/companies/nvidia) said it would lift substrate capacity for its products 2.5 times within three years [3][4]. Chief executive [Jensen Huang](https://theinference.org/markets/people/jensen-huang)'s summary: "Demand is extraordinary. Capacity is the constraint." [3]

Nvidia is paying for the buildout. [Ibiden](https://theinference.org/markets/companies/ibiden) of Japan receives a multibillion-dollar capacity reservation advance for its Ono plant, which targets triple current capacity and ramps from the first quarter of 2028 [3]. [Samsung Electro-Mechanics](https://theinference.org/markets/companies/samsung-electro-mechanics) of Korea joins Nvidia's substrate chain with jointly invested dedicated lines at Sejong and Busan; by 2028, production for Nvidia is projected to take a significant share of its substrate output [3][2]. Taiwan's [Unimicron](https://theinference.org/markets/companies/unimicron) adds capacity from the second quarter of 2027 under an Nvidia reservation agreement [3].

Nvidia's payments are not purchase orders: the [reservation advances](https://theinference.org/article/amkor-s-10-day-slide-to-41-82-prices-nvidia-s-1-5-billion-as-a-prepayment-not-committed-revenue) and co-funded lines hold capacity at those three makers for its products [3][2].

## Kulim is the counterbet, on AMD's and Marvell's money

All three make the substrates AT&S makes, and AT&S appears nowhere in [Nvidia's announcement](https://www.manilatimes.net/2026/10/21/tmt-newswire/globenewswire/nvidia-and-supply-chain-partners-expand-capacity-to-accelerate-ai-infrastructure-buildout/2450602); its expansion is financed from outside that circle [3]. On June 15 it unveiled a [€1.5–2.0 billion expansion of its Kulim plant](https://www.ad-hoc-news.de/boerse/news/corporate-news/at-und-s-expands-kulim-site-to-support-long-term-customer-demand-and-deepen-strategic-technology/69543973) in Malaysia, based on agreements with [AMD](https://theinference.org/markets/companies/amd) and one other customer, fully supported and financed by long-term customer commitments [5].

The guidance rose with it: for the 2026/27 financial year, revenue up 45–55% at constant currency, an EBITDA margin of 32–37%, capex of roughly €1.0–1.2 billion, and operating free cash flow still positive [5]. On September 22 [the second customer was named](https://www.ad-hoc-news.de/boerse/news/corporate-news/at-und-s-and-marvell-technology-expand-collaboration-to-support-next-generation-ai-infrastructure/70152370): [Marvell](https://theinference.org/markets/companies/marvell), a Silicon Valley designer of data-infrastructure chips [6]. Customer prepayments already stood at €907.2 million on June 30 [7].

*Chart: **June-quarter revenue rose about 38%; EBITDA more than doubled** Column chart of AT&S revenue and EBITDA for the June quarters of 2025 and 2026*

*AT&S fiscal first quarters ended June 30, 2025, and 2026; EUR millions; EBITDA margin 17.7% then 30.1%. [7][8]*

The June quarter backed the plan. Revenue reached €548.7 million, up about 38% year over year, EBITDA hit €165 million at a 30.1% margin against 17.7% a year earlier, and net income was €40.85 million after a €60.5 million loss [8][7].

## €137.50 against a €380 target

Deutsche Bank's view is €380: the bank [raised its target from €320 on October 8](https://www.ad-hoc-news.de/boerse/news/corporate-news/deutsche-bank-raises-target-for-at-und-s-stock-from-eur-320-00-to-eur-380-00/70397293) and kept its buy rating [7]. The stock market's view is €137.50, the weekend price on October 24, down from €157.80 on October 22 [8] and €144.00 on October 23 [7], inside a 52-week range of €25.00 to €242.00 [9].

Management tightened the balance sheet anyway, [redeeming its €350 million 2022 hybrid bond](https://www.ad-hoc-news.de/boerse/news/corporate-news/at-und-s-announces-eur-350-million-bond-redemption-as-at-und-s-stock-costs-eur-137-50/70403957), a bond that counts partly as equity, on October 22 into new financing at roughly half the coupon [9]. The bear case is capacity arithmetic: three funded rivals and 2.5 times the substrate supply by 2028 [3].

*Chart: **Three sessions took AT&S 43% off its 52-week high; the bank target is €380** Bar chart of AT&S share price from its 52-week high to October 24, 2026, against Deutsche Bank's EUR 380 target*

*Lang & Schwarz quotes, October 22 to 24, 2026; October 24 is weekend trading; 52-week high per market data; Deutsche Bank target of October 8, 2026. [7][8][9]*

## Two numbers decide it on November 5

The half-year report on November 5 is the first set of results since Marvell signed [8]. Two lines in it answer the market's doubt: prepayments from AMD and Marvell, and operating cash flow, which ran at €39.9 million in the June quarter against more than €1.0 billion of planned capex [8][5]. If those two numbers do not improve, the 43% discount stands [8][5].

## Takeaway

Nvidia is paying Ibiden, Samsung Electro-Mechanics and Unimicron to reserve the substrates its AI chips need; AT&S, financed by AMD and Marvell instead, must show on November 5 that customer prepayments and cash flow justify its Kulim bet.

## Sources

1. [AD HOC NEWS, ATX closes 4.6 percent lower as AT&S leads tech selloff, 22 October 2026](https://www.ad-hoc-news.de/boerse/news/marktberichte/atx-closes-4-6-percent-lower-as-at-und-s-leads-tech-selloff/70394956)
2. [Crypto Briefing, Samsung Electro-Mechanics and Nvidia partner on ABF substrates for AI chips, 21 October 2026](https://cryptobriefing.com/samsung-electro-mechanics-nvidia-abf-substrate/)
3. [TechPowerUp, NVIDIA and Supply Chain Partners Expand Capacity to Accelerate AI Infrastructure Buildout, 21 October 2026](https://www.techpowerup.com/353982/nvidia-and-supply-chain-partners-expand-capacity-to-accelerate-ai-infrastructure-buildout)
4. [The Manila Times (GlobeNewswire), NVIDIA and Supply Chain Partners Expand Capacity to Accelerate AI Infrastructure Buildout, 21 October 2026](https://www.manilatimes.net/2026/10/21/tmt-newswire/globenewswire/nvidia-and-supply-chain-partners-expand-capacity-to-accelerate-ai-infrastructure-buildout/2450602)
5. [AD HOC NEWS (EQS release), AT&S expands Kulim site to support long-term customer demand and deepen strategic technology partnerships, 15 June 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/at-und-s-expands-kulim-site-to-support-long-term-customer-demand-and-deepen-strategic-technology/69543973)
6. [AD HOC NEWS (EQS release), AT&S and Marvell Technology expand collaboration to support next-generation AI infrastructure, 22 September 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/at-und-s-and-marvell-technology-expand-collaboration-to-support-next-generation-ai-infrastructure/70152370)
7. [AD HOC NEWS, Deutsche Bank raises target for AT&S stock from EUR 320.00 to EUR 380.00, 23 October 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/deutsche-bank-raises-target-for-at-und-s-stock-from-eur-320-00-to-eur-380-00/70397293)
8. [AD HOC NEWS, AT&S reports EUR 548.70 million revenue: AT&S stock costs EUR 157.80 below its EUR 380.00 target, 22 October 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/at-und-s-reports-eur-548-70-million-revenue-at-und-s-stock-costs-eur-157-80-below-its-eur-380-00/70391872)
9. [AD HOC NEWS, AT&S announces EUR 350 million bond redemption as AT&S stock costs EUR 137.50, 24 October 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/at-und-s-announces-eur-350-million-bond-redemption-as-at-und-s-stock-costs-eur-137-50/70403957)


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Nvidia pays Ibiden, Samsung Electro-Mechanics and Unimicron for substrate capacity; AT&S fell 18.6% — The Inference. Canonical: https://theinference.org/article/nvidia-pays-ibiden-samsung-electro-mechanics-and-unimicron-for-substrate-capacity-at-s-fell-18-6