Nvidia lines up supplier capacity expansions, including a $1.1 billion advance to KYEC

Nvidia said in an Oct. 21 announcement at its GTC Berlin conference that it is working with six supply chain partners to expand manufacturing capacity for substrates, advanced packaging, testing and optical engines.

The partners are Amkor Technology, IBIDEN, King Yuan Electronics (KYEC), Samsung Electro-Mechanics, Siliconware Precision Industries (SPIL) and Unimicron Technology.

The numbers

• Substrates: Nvidia plans to raise substrate capacity for its products by 2.5 times over the next three years. It is providing a multibillion-dollar capacity reservation advance to support IBIDEN's Ono Plant in Japan, which targets three times current capacity, with new capacity expected to begin ramping in the first quarter of 2028. Unimicron's expansion in Taiwan is expected to add capacity starting in the second quarter of 2027 and reach full capacity by mid-2028. Samsung Electro-Mechanics is joining Nvidia's substrate supply chain.
• Packaging: Nvidia and Amkor target a more than 300% increase in interposer wafer capacity in South Korea by the end of 2028.
• Testing: Nvidia expects its total semiconductor testing capacity to double from calendar 2026 to 2027. A $1.1 billion capacity reservation advance to KYEC will support new U.S. testing facilities, with high-volume production targeted for April 2027.
• Optics: SPIL aims to raise optical-engine capacity for co-packaged optics in Taiwan by 15 times by mid-2027, then double it again by the end of 2028.

Why it matters

"Demand is extraordinary. Capacity is the constraint," Chief Executive Jensen Huang said in the release.

Capacity reservation advances are prepayments to suppliers. The release gave a dollar figure only for KYEC and described the IBIDEN advance as multibillion-dollar.

Sources

1. NVIDIA Corporation press release, "NVIDIA and Supply Chain Partners Expand Capacity to Accelerate AI Infrastructure Buildout," Oct. 21, 2026, NVIDIA investor relations website

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