NVIDIA and partners to expand capacity for AI infrastructure
NVIDIA announced plans with six supply-chain partners to expand manufacturing for AI infrastructure. Substrate capacity is set to rise 2.5x over three years, while SPIL’s optical-engine capacity is targeted to increase 15x by mid-2027.
NVIDIA announced plans with Amkor Technology, IBIDEN, King Yuan Electronics (KYEC), Samsung Electro-Mechanics, Siliconware Precision Industries (SPIL) and Unimicron Technology Corporation to expand global manufacturing. The program covers substrates, advanced packaging, semiconductor testing and optical engines.
Substrate capacity is targeted to increase 2.5x over the next three years. Under its agreement with NVIDIA, IBIDEN is expanding its Ono Plant in Japan toward three times its current capacity, with additional capacity expected to begin ramping in the first quarter of 2028.
Samsung Electro-Mechanics will join NVIDIA’s substrate supply chain through existing operations in South Korea, alongside upgrades and new factories in Sejong and Busan. Unimicron is expanding KF substrate manufacturing in Taiwan, with added capacity expected from the second quarter of 2027 and full capacity by mid-2028.
Advanced packaging in South Korea
NVIDIA and Amkor plan to increase interposer wafer capacity in South Korea by more than 300% by the end of 2028. The expansion and Amkor’s new manufacturing facilities are intended to support current and next-generation NVIDIA platforms.
Testing and U.S. manufacturing
NVIDIA expects total semiconductor testing capacity to double from 2026 to 2027 through expansions in the United States, Taiwan and Singapore. KYEC will use a $1.1 billion capacity-reservation advance from NVIDIA to support new U.S. testing facilities and equipment; high-volume production is 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 are expanding Taiwan manufacturing for optical engines used in co-packaged optics. Capacity is targeted to rise 15x by mid-2027, with another doubling planned by the end of 2028.
NVIDIA CEO Jensen Huang said demand for infrastructure was extraordinary and that manufacturing capacity remained the constraint.
What we know
- NVIDIA is working with six partners to expand manufacturing for AI infrastructure.
- Substrate capacity is targeted to rise 2.5x over three years.
- Amkor plans to increase interposer wafer capacity by more than 300% by the end of 2028.
- KYEC will receive a $1.1 billion NVIDIA advance for new U.S. testing facilities.
- SPIL is targeting a 15x increase in optical-engine capacity by mid-2027.
Trust: Primary source
- The story cites a primary statement. It establishes what its author said, but does not guarantee every claim is true.
- Sources: NVIDIA Newsroom.
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