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NVIDIA expands supply chain: 2.5x substrate, $1.1B KYEC

At GTC Berlin, NVIDIA announced plans with suppliers to expand substrate, packaging, testing and optical-engine capacity. Huang said demand is extraordinary and capacity is the constraint.

By: Mikola Máté Patrik · · 2 min read

NVIDIA press image: NVIDIA Supply Chain Partners
Image: NVIDIA · Press kit · Official NVIDIA press/blog image · Source

What changed?

On October 21 at GTC Berlin, NVIDIA announced plans with six suppliers to expand manufacturing capacity (NVIDIA Newsroom). Jensen Huang said: "Demand is extraordinary. Capacity is the constraint."

The numbers

  • Substrates: 2.5x capacity over three years. IBIDEN's Ono plant in Japan, backed by a multibillion-dollar NVIDIA advance, targets 3x current capacity starting in Q1 2028. Samsung Electro-Mechanics joins as a new supplier from South Korea, and Unimicron in Taiwan adds capacity from Q2 2027.
  • Packaging: Amkor targets more than 300% more interposer wafer capacity in South Korea by the end of 2028.
  • Testing: NVIDIA expects total semiconductor testing capacity to double from 2026 to 2027. KYEC gets a $1.1 billion capacity reservation advance for new U.S. test facilities, with high-volume production targeted for April 2027. Singapore testing ramps from February 2027.
  • Co-packaged optics: SPIL aims for 15x optical-engine capacity in Taiwan by mid-2027, with another doubling targeted by the end of 2028.

Why it matters

AI infrastructure growth is now limited by packaging, substrates and testing, not just GPU fabrication. NVIDIA is locking in that capacity with advances and reservations. These are plans, and the timelines are commitments from NVIDIA and its partners.

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