NVIDIA Reaches Capacity Agreements With Six Supply Chain Partners

NVIDIA on October 21, 2026, announced plans with six supply chain partners to expand global manufacturing capacity for its accelerated computing and full-stack AI factory platform, backed by capacity reservation advances that include $1.1 billion to testing company King Yuan Electronics and a multibillion-dollar advance to substrate supplier IBIDEN.

Announced at GTC Berlin, the partner group spans four manufacturing disciplines: IBIDEN, Samsung Electro-Mechanics and Unimicron Technology Corporation in substrates; Amkor Technology (AMKR ) in advanced packaging; King Yuan Electronics in semiconductor testing; and Siliconware Precision Industries in optical engines. NVIDIA (NVDA ) said the agreements with new and existing suppliers expand critical manufacturing capabilities while strengthening the resiliency and redundancy of its global supply chain.

“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. Huang said the partners are expanding capacity around the globe to scale production and help deliver the AI supercomputing systems powering what he described as a new industrial revolution.

Substrate Agreements Span Japan, South Korea and Taiwan

NVIDIA plans to increase substrate capacity for its products by 2.5x over the next three years, with the newly detailed agreements contributing to that expansion and more underway, according to the company.

Under an agreement signed and announced earlier in 2026, NVIDIA is providing IBIDEN a multibillion-dollar capacity reservation advance supporting the manufacturer’s Ono Plant in Japan. 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 joining NVIDIA’s substrate supply chain, bringing immediate capacity from its existing operations in South Korea. The collaboration also supports facility upgrades and new factories in Sejong and Busan. By 2028, production allocated to NVIDIA is projected to account for a significant portion of Samsung Electro-Mechanics’ total annual package substrate production capacity, NVIDIA said.

NVIDIA is supporting Unimicron’s KF substrate manufacturing expansion in Taiwan under a capacity reservation agreement. The expansion is expected to begin adding capacity in the second quarter of 2027 and reach full capacity by mid-2028.

Packaging, Testing and Optical Engines

NVIDIA and Amkor plan to expand advanced packaging 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 the country, is intended to support higher production volumes for NVIDIA’s current and next-generation platforms.

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 $1.1 billion capacity reservation advance to KYEC will support 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.

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

The South Korea packaging plan follows an earlier agreement between NVIDIA and Amkor. On July 23, 2026, Amkor Technology announced a multi-year strategic partnership with NVIDIA covering advanced semiconductor packaging and test technologies for next-generation AI and accelerated computing platforms. That agreement, a $1.5 billion multi-year advanced packaging and development arrangement, provides an NVIDIA prepayment supporting the expansion of Amkor’s U.S. advanced packaging capacity in Arizona, complementing the company’s established manufacturing footprint across Asia.

Amkor has delivered advanced packaging solutions supporting NVIDIA platforms across data center processors, networking chipsets and next-generation accelerated computing systems, according to the July release. Amkor describes itself as the world’s largest U.S.-headquartered OSAT, a provider of outsourced semiconductor packaging and test services.

“AI is driving a generational shift in technology, transforming every industry and creating a unique opportunity to reinvigorate American manufacturing and supply chains,” Debora Shoquist, executive vice president of operations at NVIDIA, said in the July announcement.

Amkor chief executive Kevin Engel said the agreement accelerates the company’s long-term roadmap and supports its ability to deliver full turnkey advanced packaging and test solutions while expanding U.S. capabilities.