NVIDIA expands manufacturing capacity with supply chain partners for AI infrastructure growth

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NVIDIA expands AI manufacturing

Highlights

NVIDIA will increase substrate capacity for AI infrastructure by 2.5 times over three years, partnering with Amkor, IBIDEN, Samsung Electro-Mechanics, Unimicron, King Yuan Electronics and Siliconware.
IBIDEN received a multibillion-dollar capacity reservation advance for its Ono Plant, while Samsung and Unimicron expand substrate supply and manufacturing for NVIDIA across South Korea and Taiwan.
NVIDIA and Amkor aim to boost interposer wafer capacity in South Korea by over 300% by 2028, and NVIDIA expects semiconductor testing capacity to double between 2026 and 2027 through global buildouts.

Capacity expansion plan across key components

As reported by IPR Software Media, citing NVIDIA Newsroom, NVIDIA is working with Amkor Technology, IBIDEN, King Yuan Electronics, Samsung Electro-Mechanics, Siliconware Precision Industries and Unimicron Technology Corporation to expand manufacturing capacity for critical parts of its AI infrastructure platform. The company says the effort is designed to strengthen both resiliency and redundancy in its global supply chain as demand for AI supercomputing systems remains elevated.

Jensen Huang, founder and CEO of NVIDIA, says the company is in the middle of what he describes as the largest infrastructure buildout in human history, with capacity now acting as the main constraint. NVIDIA plans to increase substrate capacity for its products by 2.5 times over the next three years, while also adding support for new and existing suppliers in several parts of the production chain.

Under an agreement signed and announced earlier this year by IBIDEN, NVIDIA is providing a multibillion-dollar capacity reservation advance to support the Ono Plant in Japan. Samsung Electro-Mechanics is joining NVIDIA's substrate supply chain with immediate capacity from existing operations in South Korea, while Unimicron is receiving support for KF substrate manufacturing expansion in Taiwan through a capacity reservation agreement.

Regional manufacturing buildout and sector impact

NVIDIA and Amkor also plan to expand advanced packaging capacity in South Korea, targeting an increase of more than 300% in interposer wafer capacity by the end of 2028. In addition, NVIDIA expects its total semiconductor testing capacity to double from calendar 2026 to 2027, backed by buildouts in the U.S., Taiwan and Singapore.

The expansion points to continued investment pressure across the semiconductor supply chain as AI infrastructure demand rises globally. For suppliers in substrates, packaging and testing, the plan signals a broader production ramp that could reinforce Asia's central role in chip manufacturing while extending capacity support into the U.S. and other regional hubs.

Our earlier report on the U.S. AI data center boom highlighted that the rapid buildout is increasingly constrained by financing costs, construction delays, and power limitations. We noted that a large share of planned projects may prove unrealistic, with weakening investor sentiment and grid pressures raising doubts about how fast computing capacity can scale in practice.

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