NVIDIA Announces Capacity Expansion Deals with Supply Chain Partners to Scale AI Infrastructure

At GTC Berlin on October 21, 2026, NVIDIA announced agreements with major global semiconductor supply chain partners, including IBIDEN, Samsung Electro-Mechanics, Unimicron Technology Corporation, Amkor Technology, King Yuan Electronics (KYEC), and Siliconware Precision Industries (SPIL), to significantly expand manufacturing capacity for its accelerated computing and full-stack AI factory platform. Jensen Huang, founder and CEO of NVIDIA, stated, “We are in the midst of the largest infrastructure buildout in human history. Demand is extraordinary. Capacity is the constraint.”

The expansion targets critical bottlenecks in AI chip production: substrates, advanced packaging, testing, and optical engines. According to the announcement, NVIDIA plans to increase substrate capacity by 2.5 times over the next three years. Specifically, IBIDEN will receive a multibillion-dollar capacity reservation advance from NVIDIA to support its Ono Plant in Japan, aiming to triple current capacity levels. Samsung Electro-Mechanics is joining NVIDIA’s substrate supply chain, with new factories planned in Sejong and Busan, South Korea. Unimicron is supporting KF substrate manufacturing expansion in Taiwan through a capacity reservation agreement.

In advanced packaging, NVIDIA and Amkor plan to expand capacity in South Korea, targeting a greater than 300% increase in interposer wafer capacity by the end of 2028. For 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. Additionally, NVIDIA and SPIL plan to increase optical-engine capacity for co-packaged optics by 15 times by mid-2027.