Nvidia and Six Suppliers Plan Large Expansion of Substrate, Packaging and Testing Capacity

Nvidia announced on October 21, at its GTC Berlin event, that it is working with six supply chain partners to expand manufacturing capacity for its AI computing platforms. The companies are Amkor Technology, IBIDEN, King Yuan Electronics (KYEC), Samsung Electro-Mechanics, Siliconware Precision Industries (SPIL) and Unimicron.

What each partner is doing

• Substrates: Nvidia is targeting a 2.5x increase in substrate capacity over three years and says more agreements are in progress.
• IBIDEN: A multibillion-dollar capacity reservation advance supports its Ono Plant in Japan, which is targeted to reach three times its current capacity, with additional capacity expected to ramp in the first quarter of 2028.
• Samsung Electro-Mechanics: Joins Nvidia's substrate supply chain with immediate capacity from South Korea, plus upgrades and new factories in Sejong and Busan.
• Unimicron: A reservation supports its KF substrate expansion in Taiwan, with added capacity from the second quarter of 2027 and full capacity by mid-2028.
• Amkor: Plans to expand interposer wafer capacity in South Korea by more than 300% by the end of 2028.
• KYEC: A $1.1 billion capacity reservation advance funds new U.S. testing facilities, with high-volume production targeted for April 2027.
• SPIL: Targets a 15x increase in optical-engine capacity for co-packaged optics in Taiwan by mid-2027, with a further doubling by the end of 2028.

Testing capacity

Nvidia expects its total testing capacity to double from calendar 2026 to 2027, with buildouts in the United States, Taiwan and Singapore. Expanded Singapore operations are expected to reach high-volume production in February 2027.

Why it matters

Advanced packaging, substrates and final testing are steps that sit between wafer fabrication and a finished accelerator, and they have been cited as limits on how quickly AI systems can be delivered. Founder and CEO Jensen Huang said in the announcement, "Capacity is the constraint."

The release is forward-looking: the timelines and capacity targets are projections that depend on factors including Nvidia's reliance on third-party manufacturers. Nvidia did not disclose the full size of the advances paid to IBIDEN and Unimicron beyond describing the IBIDEN payment as multibillion-dollar.