NVIDIA plans to expand manufacturing capacity with supply chain partners to meet growing demand for its accelerated computing and AI factory systems. The projects cover substrates, advanced packaging, semiconductor testing and optical engines.
“We are in the midst of the largest infrastructure buildout in human history. Demand is extraordinary. Capacity is the constraint,” said Jensen Huang, founder and CEO of NVIDIA. “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.”
Substrate Manufacturing
NVIDIA plans to increase substrate capacity for its products by 2.5 times over the next three years, supported by IBIDEN, Samsung Electro-Mechanics and Unimicron Technology Corporation.
Under an agreement signed and announced earlier this year by IBIDEN, NVIDIA is providing a multibillion-dollar capacity reservation advance to support the supplier’s Ono Plant in Japan. The expansion targets three times the plant’s current capacity, with additional capacity expected to begin ramping in Q1, 2028.
Samsung Electro-Mechanics is joining NVIDIA’s substrate supply chain from existing operations in South Korea. The collaboration also supports facility upgrades and new factories in Sejong and Busan.
A capacity reservation agreement with NVIDIA supports Unimicron’s KF substrate manufacturing expansion in Taiwan. The project is expected to begin adding capacity in the Q2, 2027 and reach full capacity by mid-2028.
Advanced Packaging and Testing
NVIDIA and Amkor Technology plan to expand packaging capacity in South Korea, targeting an increase of more than 300% in interposer wafer capacity by the end of 2028. The expansion, alongside Amkor’s development of new manufacturing facilities in the country, will support production of NVIDIA’s current and next-generation platforms.
NVIDIA expects its total semiconductor testing capacity to double from calendar 2026 to 2027 through buildouts in the United States, Taiwan and Singapore.
A $1.1B capacity reservation advance from NVIDIA to King Yuan Electronics (KYEC) will support new U.S. testing facilities and equipment. High-volume production is targeted for Apr’2027.
Expanded testing operations in Singapore are expected to begin high-volume production in Feb’2027.
Optical Engine Production
NVIDIA and Siliconware Precision Industries (SPIL) plan to expand manufacturing capacity in Taiwan for optical engines used in co-packaged optics. The project targets a 15-fold capacity increase by mid-2027, with another doubling targeted by the end of 2028, to support connectivity requirements in large-scale computing infrastructure.
Source: NVIDIA
About NVIDIA
NVIDIA, founded in 1993 and headquartered in Santa Clara, CA, designs and manufactures graphics processing units, systems on chips, networking hardware, and AI intelligence software such as CUDA. Its products serve industries including gaming, data centers, autonomous vehicles, professional visualization, robotics, health care, and energy. The company introduced the GPU in 1999 and later expanded into accelerated computing and AI infrastructure. In gaming, its GPUs support high-performance rendering, while in AI and high-performance computing, its systems provide the infrastructure for training and deploying large-scale models. NVIDIA also develops tools for robotics and autonomous driving.
