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NVIDIA plans capacity expansion with supply chain partners

Source Decision Insights Record Published October 21, 2026 Companies 3
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3 companies named across 1 category, one of 620 articles referencing Nvidia. Previous coverage: NVIDIA introduces OpenShell reference architecture for agents (Oct 2026).

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NVIDIA has outlined plans with a group of supply chain partners to expand global manufacturing capacity. The effort responds to growing demand for its products, and it aims to strengthen the resiliency and redundancy of NVIDIA’s global supply chain.

Substrate capacity is planned to rise 2.5x over three years, with the agreements described below contributing and more work underway. Under an agreement announced earlier this year, NVIDIA is providing IBIDEN a multibillion-dollar capacity reservation advance for its Ono Plant in Japan, which targets 3x current plant levels. Samsung Electro-Mechanics is adding immediate capacity from existing South Korean operations, alongside upgrades and new factories in Sejong and Busan.

Unimicron Technology Corporation’s KF substrate expansion in Taiwan, backed by a capacity reservation agreement, is expected to add capacity starting in the second quarter of 2027 and reach full capacity by mid-2028. NVIDIA and Amkor Technology plan to raise advanced packaging interposer wafer capacity in South Korea by more than 300% by the end of 2028.

NVIDIA expects total semiconductor testing capacity to double from calendar 2026 to 2027, supported by buildouts in the U.S., Taiwan and Singapore. A $1.1 billion capacity reservation advance from NVIDIA will support new U.S. testing facilities and equipment at King Yuan Electronics (KYEC), with high-volume production targeted for April 2027, while Siliconware Precision Industries (SPIL) targets a 15x increase in optical-engine capacity for co-packaged optics by mid-2027.

“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. “Our supply chain partners are the world’s best manufacturers. I’m grateful they are expanding capacity around the globe to scale production and help us deliver the AI supercomputing systems powering this new industrial revolution.”

Statements about expected capacity, production volumes, timing and supply chain resiliency are forward-looking and subject to risks described in NVIDIA’s SEC filings.

Press release, provided by Globe Newswire on behalf of Nvidia. Read the original.

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