Nvidia Expands Global Manufacturing Capacity to Meet Rising Demand for AI Infrastructure
Nvidia, the US-based designer of graphics processing units, accelerated computing technologies, and artificial intelligence solutions, has announced new agreements with supply-chain partners to expand its global manufacturing capacity.
The agreements are aimed at supporting the production of advanced computing systems and AI infrastructure while helping Nvidia meet growing demand for the hardware required to operate large-scale AI applications.
Nvidia Expands Semiconductor Manufacturing Capabilities
Announced during the company’s conference in Berlin, the agreements cover semiconductor substrates, advanced packaging, chip testing, and optical engine manufacturing.
The partnerships involve Amkor Technology, Ibiden, King Yuan Electronics, Samsung Electro-Mechanics, Siliconware Precision Industries, and Unimicron Technology.
The expanded network is expected to increase production capacity, diversify manufacturing capabilities, and reduce reliance on individual production locations.
Jensen Huang, founder and CEO of Nvidia, said the world is experiencing the largest expansion of infrastructure in human history, driven by unprecedented levels of demand.
He noted that manufacturing capacity has become the biggest constraint on meeting market requirements, adding that expanding the company’s global partner network will help increase output and accelerate deliveries of AI supercomputing systems supporting a new phase of industrial transformation.
Semiconductor Substrate Capacity to Increase 2.5 Times
Nvidia plans to increase manufacturing capacity dedicated to its semiconductor substrate products by 2.5 times over the next three years through agreements with Japan’s Ibiden, South Korea’s Samsung Electro-Mechanics, and Taiwan’s Unimicron.
The agreements are designed to support expected growth in production volumes and secure the components required for Nvidia’s advanced computing platforms.
Nvidia is supporting the expansion of Ibiden’s Ono facility in Japan through a capacity reservation agreement that includes billions of dollars in upfront funding.
The expansion is expected to triple the facility’s current production capacity, with the additional capacity scheduled to come online gradually beginning in the first quarter of 2028.
Samsung and Unimicron Expand Production
Samsung Electro-Mechanics is joining Nvidia’s semiconductor substrate supply chain by leveraging its existing manufacturing capabilities in South Korea.
The company also plans to upgrade existing facilities and develop new plants in Sejong and Busan. By 2028, Nvidia-dedicated production is expected to account for a significant portion of Samsung Electro-Mechanics’ annual capacity for semiconductor packaging substrates.
In Taiwan, Nvidia is supporting Unimicron’s expansion of KF substrate manufacturing facilities through a capacity reservation agreement.
The new capacity is expected to begin contributing to production during the second quarter of 2027 and reach full capacity by mid-2028.
Advanced Packaging Capacity Set to Rise
Nvidia and Amkor Technology are also expanding advanced manufacturing capabilities in South Korea.
The companies are targeting an increase of more than 300% in production capacity for silicon interposers by the end of 2028, alongside the development of new manufacturing facilities.
The additional capacity will support higher production volumes for Nvidia’s existing computing platforms as well as future generations of its products.
Nvidia Doubles Semiconductor Testing Capacity
Nvidia also plans to double its overall semiconductor testing capacity between 2026 and 2027 through expansions in the United States, Taiwan, and Singapore.
The plan includes $1.1 billion in upfront funding for King Yuan Electronics to reserve production capacity and support the construction of new chip-testing facilities in the United States, as well as the procurement of required equipment.
Mass production at the new US testing facilities is targeted to begin in April 2027, while expanded testing operations in Singapore are expected to enter large-scale production in February 2027.
Optical Engine Production to Expand 15 Times
In optical communications, Nvidia is working with Siliconware Precision Industries to expand optical engine manufacturing in Taiwan.
These components are used to integrate optical elements within semiconductor packages and are designed to support increasing connectivity requirements across large-scale computing infrastructure.
Nvidia is targeting a 15-fold increase in optical engine production capacity by mid-2027, with plans to double that capacity again by the end of 2028.