NVIDIA expands supplier capacity
On 21 October 2026 NVIDIA announced plans with six suppliers to expand manufacturing capacity: a 2.5-fold increase in substrate capacity over three years (IBIDEN, Samsung Electro-Mechanics, Unimicron), more than a 300 per cent increase in Amkor's interposer capacity in South Korea by the end of 2028, a doubling of NVIDIA's own chip-testing capacity from 2026 to 2027, a $1.1 billion capacity reservation advance to King Yuan Electronics for U.S. testing, and a 15-fold increase in SPIL's optical-engine capacity by mid-2027.
Why it matters
In the release Jensen Huang says "capacity is the constraint". The document shows where NVIDIA is putting money to ease it: not in wafers but in substrates, packaging, testing and optics. The figures are targets of NVIDIA and its partners with dates in 2027–2028, and a capacity reservation advance is payment for future capacity, not capacity built.
What the release says. Substrates: NVIDIA plans to raise capacity 2.5x over three years; the IBIDEN agreement was "signed and announced earlier this year" (a multibillion-dollar reservation advance for the Ono Plant in Japan, targeting 3x current capacity, with additional capacity ramping from the first quarter of 2028; no amount named); Samsung Electro-Mechanics joins from existing operations in South Korea and new factories in Sejong and Busan, with output for NVIDIA projected to become "a significant portion" of its package-substrate capacity by 2028; Unimicron expands KF substrate manufacturing in Taiwan, adding capacity from the second quarter of 2027 and reaching full capacity by mid-2028. Packaging: Amkor plans a greater-than-300% increase in interposer wafer capacity in South Korea by the end of 2028. Testing: NVIDIA's own testing capacity is expected to double from calendar 2026 to 2027; KYEC's $1.1 billion advance supports new U.S. facilities with high-volume production targeted for April 2027; Singapore, February 2027. Optics: SPIL will raise optical-engine capacity for co-packaged optics in Taiwan 15x by mid-2027 and double it again by the end of 2028. The release says that more substrate agreements are "underway". What the record does not claim. None of this is built yet: these are announced plans and targets, and the amount of the IBIDEN advance is not named. No confirmation from the suppliers or elsewhere was sought. This is the company's own release.