NVIDIA Pledges Billions to Six Suppliers to Boost AI Chip Substrate Capacity 2.5-Fold by 2028

NVIDIA has signed a package of manufacturing agreements with six suppliers, Amkor Technology, IBIDEN, King Yuan Electronics (KYEC), Samsung Electro-Mechanics, Siliconware Precision Industries (SPIL), and Unimicron Technology Corporation, to enlarge production capacity for substrates, advanced packaging, semiconductor testing, and optical engines.

The deals were unveiled at GTC Berlin on October 21, 2026, and cover manufacturing sites in Japan, South Korea, Taiwan, Singapore, and the United States.

NVIDIA Expands Supply Chain Capacity to Meet Growing AI Demand

According to NVIDIA, the agreements are intended not only to raise output volumes but also to add resiliency and redundancy to its global supply chain, letting both new and existing suppliers broaden their manufacturing capabilities. The company says the combined efforts are designed to meet growing demand for its accelerated computing and AI factory platform.

Hensen Huang, founder and CEO of NVIDIA, framed the effort against the backdrop of surging AI infrastructure spending. "We are in the midst of the largest infrastructure buildout in human history. Demand is extraordinary. Capacity is the constraint," Huang said in the announcement.

"Our supply chain partners are the world's best manufacturers. I'm grateful they are expanding capacity around the globe to scale production and help us deliver the AI supercomputing systems powering this new industrial revolution."

IBIDEN, Samsung Electro-Mechanics, and Unimicron Drive Substrate Ramp

The core of the plan is a 2.5x increase in substrate capacity for NVIDIA products over the next three years, driven by agreements with three suppliers, with more underway. IBIDEN's Ono Plant in Japan is receiving a multibillion-dollar capacity reservation advance from NVIDIA under an agreement signed and announced earlier this year. The expansion targets capacity reaching 3x current levels at the plant, with additional capacity expected to begin ramping in the first quarter of 2028.

Samsung Electro-Mechanics is a new entrant to NVIDIA's substrate supply chain, contributing immediate capacity from its existing operations in South Korea. The collaboration also supports facility upgrades and new factories in Sejong and Busan, South Korea. By 2028, production allocated to NVIDIA is projected to account for a significant portion of Samsung Electro-Mechanics' total annual package substrate production capacity.

In Taiwan, NVIDIA is backing Unimicron's KF substrate manufacturing expansion through a capacity reservation agreement. That expansion is expected to begin adding capacity in the second quarter of 2027 and to reach full capacity by mid-2028.

Amkor to Lift Interposer Wafer Capacity More Than 300%

In advanced packaging, NVIDIA and Amkor plan to expand capacity in South Korea, targeting a greater than 300% increase in interposer wafer capacity by the end of 2028. The planned expansion, alongside Amkor's development of new manufacturing facilities in South Korea, will support higher production volumes for NVIDIA's current and next-generation platforms.

Testing Footprint Doubles, Anchored by USD 1.1 Billion KYEC Advance

NVIDIA expects its total semiconductor testing capacity to double from calendar 2026 to 2027, supported by buildouts in the United States, Taiwan, and Singapore.

The U.S. piece is anchored by a USD 1.1 billion capacity reservation advance to KYEC, which will fund new U.S. testing facilities and equipment, with high-volume production targeted for April 2027.

In Singapore, expanded testing operations are expected to begin high-volume production in February 2027.

SPIL Targets 15x Growth in Co-Packaged Optics

To serve the connectivity requirements of large-scale computing infrastructure, NVIDIA and SPIL plan to expand manufacturing capacity in Taiwan for optical engines used in co-packaged optics. The expansion targets a 15x increase by mid-2027, with another doubling aimed for by the end of 2028.

The Full Scope of the Buildout

Across the six agreements, the division of labor breaks down as follows: package substrates from IBIDEN, Samsung Electro-Mechanics, and Unimicron; interposer wafer packaging from Amkor; testing from KYEC and other buildout locations; and co-packaged optics from SPIL. NVIDIA states that the combined efforts are intended to meet growing demand for its accelerated computing and AI factory platform while reinforcing the redundancy of its supply network.