NVIDIA and Supply Chain Partners Expand Manufacturing Capacity for AI Infrastructure

NVIDIA on Wednesday announced plans with six supply chain partners to expand manufacturing capacity for substrates, advanced packaging, testing and optical engines. The partners are Amkor Technology, IBIDEN, King Yuan Electronics (KYEC), Samsung Electro-Mechanics, Siliconware Precision Industries (SPIL) and Unimicron Technology Corporation. NVIDIA says the moves also strengthen the resiliency and redundancy of its global supply chain.

Substrate capacity up 2.5x over three years
NVIDIA says it plans to increase substrate capacity for its products by 2.5x over the next three years, with more agreements underway. Under an agreement IBIDEN announced earlier this year, NVIDIA is providing a multibillion-dollar capacity reservation advance for IBIDEN's Ono Plant in Japan, targeting 3x current capacity at the plant, with additional capacity expected to begin ramping in the first quarter of 2028. Samsung Electro-Mechanics is joining NVIDIA's substrate supply chain with immediate capacity from its existing South Korea operations, plus upgrades and new factories in Sejong and Busan. NVIDIA is also backing Unimicron's KF substrate expansion in Taiwan with a capacity reservation agreement; it is expected to begin adding capacity in the second quarter of 2027 and reach full capacity by mid-2028.

Amkor packaging expansion
NVIDIA and Amkor plan to expand advanced packaging capacity in South Korea, targeting a more than 300% increase in interposer wafer capacity by the end of 2028, alongside new Amkor manufacturing facilities there.

Testing capacity to double
NVIDIA says it expects its total semiconductor testing capacity to double from calendar 2026 to 2027, supported by buildouts in the U.S., Taiwan and Singapore. Its $1.1 billion capacity reservation advance to KYEC will support new U.S. testing facilities and equipment, with high-volume production targeted for April 2027. Expanded testing operations in Singapore are expected to begin high-volume production in February 2027.

Optical engines for co-packaged optics
NVIDIA and SPIL plan to expand capacity in Taiwan for optical engines used in co-packaged optics, targeting a 15x increase by mid-2027 and aiming for another doubling by the end of 2028.

"Demand is extraordinary. Capacity is the constraint," said Jensen Huang, NVIDIA's founder and CEO.