NVIDIA Expands Manufacturing Capacity with Six Supply Chain Partners for AI Factory Platforms

On October 21, NVIDIA announced that it is expanding global manufacturing capacity with six supply chain partners to meet growing demand for accelerated computing and AI factory platforms. The collaborations span substrates, advanced packaging, semiconductor testing, and co-packaged optics.

For substrates, NVIDIA plans to multiply its required substrate capacity by 2.5 times from 2026 to 2029. Under an agreement disclosed earlier in 2026, NVIDIA will provide billions of dollars in prepayments to support the expansion of IBIDEN's Ono plant in Japan, which is expected to add 2x additional capacity with production ramping from the first quarter of 2028. Samsung Electro-Mechanics will join NVIDIA's substrate supply chain with shipments starting immediately, supporting upgrades and new construction at its Sejong and Busan facilities; by 2028, NVIDIA is expected to take a significant share of the company's package-substrate capacity. NVIDIA has also entered a capacity reservation agreement to support Unimicron's KF substrate expansion, with capacity ramping expected to begin in the second quarter of 2027 and full production in 2028.

In advanced packaging, NVIDIA plans to expand Amkor's advanced packaging capacity in South Korea, targeting a more than 300% increase in interposer wafer capacity by the end of 2028. For testing, NVIDIA expects its test demand to double between 2026 and 2027, and will pay KYEC $1.1 billion in prepayments to support large-scale production at new Singapore capacity in February 2027 and US capacity in April 2027. For co-packaged optics, NVIDIA plans to work with SPIL to significantly increase CPO optical engine capacity, aiming for a 15x increase by mid-2027 and another doubling by the end of 2028.