NVIDIA Partners with Six Companies to Expand Substrate, Advanced Packaging, and CPO Capacity

NVIDIA Teams Up with Six Partners to Expand Substrates, Advanced Packaging and CPO Source: Semiconductor Vision Published: 2026-10-22 16:53 NVIDIA Advanced Packaging promotional poster Faced with continued growing demand for accelerated computing and AI factory platforms, NVIDIA is working with six supply chain partners to expand capacity for substrates, advanced packaging, testing and optical engines, further enhancing the resilience and supply assurance capabilities of the global supply chain.

NVIDIA announced on October 21 at the GTC Berlin conference that it will work with six supply chain partners to expand capacity in key manufacturing segments. Among them, substrate capacity is planned to increase to 2.5 times the current level over the next three years, while optical engine capacity is targeted to increase to 15 times the current level by mid-2027. This series of arrangements is not only aimed at meeting the continued growth in demand for AI infrastructure, but also reflects NVIDIA's efforts to enhance the flexibility and delivery assurance capabilities of the global supply chain by locking in capacity in advance and expanding its manufacturing cooperation network.

Working with Six Major Partners to Comprehensively Expand Supply Chain Capacity

NVIDIA announced that it will coordinate capacity expansion with six supply chain partners, covering key segments such as semiconductor substrates, advanced packaging, testing and optical engines, to meet the growing market demand for accelerated computing and AI factory platforms. The plan was announced at the GTC Berlin conference, and the partners include Amkor Technology, IBIDEN, KYEC, Samsung Electro-Mechanics, SPIL and Unimicron Technology.

NVIDIA stated that this cooperation will both drive existing suppliers to expand capacity and support new suppliers to join, further enhancing the resilience and redundancy of the global supply chain. "We are in the midst of the largest infrastructure buildout in human history. Market demand is extremely strong, and capacity has become the constraint," said Jensen Huang.

Semiconductor Substrate Capacity to Increase to 2.5 Times in Three Years

NVIDIA plans to increase the substrate capacity required for its products to 2.5 times the current level within the next three years, and said it is still pursuing more cooperation agreements.

Earlier this year, IBIDEN announced a cooperation agreement with NVIDIA. NVIDIA will provide billions of dollars in capacity reservation prepayments to support the expansion of IBIDEN's plant in Ono, Japan. The plant's target capacity will reach three times the current level, with the additional capacity expected to be gradually released starting in the first quarter of 2028.

Samsung Electro-Mechanics will also join NVIDIA's substrate supply chain, first utilizing capacity at its existing plants in South Korea while advancing related facility upgrades and supporting the construction of new plants in Sejong and Busan. It is expected that by 2028, the capacity allocated to NVIDIA will account for a considerable portion of Samsung Electro-Mechanics' total annual packaging substrate capacity.

In Taiwan, China, NVIDIA is supporting Unimicron Technology through a capacity reservation agreement to expand KF substrate capacity. The related expansion is expected to begin contributing additional capacity in the second quarter of 2027 and reach full production by mid-2028.

Advanced Packaging and Testing Capacity to Expand Simultaneously

In the field of advanced packaging, NVIDIA and Amkor Technology plan to expand advanced packaging capacity in South Korea, with the goal of increasing interposer wafer capacity to more than four times the current level by the end of 2028. "Interposer wafers" are an important structure used in advanced packaging to connect chips and packaging substrates, and the related capacity expansion will help support more complex high-performance chip packaging needs. Combined with Amkor Technology's plan to build new manufacturing facilities in South Korea, this expansion will provide more ample capacity support for NVIDIA's current and next-generation platforms.

The testing segment will also see expansion. NVIDIA expects its total semiconductor testing capacity to reach twice the 2026 calendar year level in the 2027 calendar year, with related expansion projects located in the United States, Taiwan, China and Singapore. Among them, NVIDIA will provide KYEC with $1.1 billion in capacity reservation prepayments to support its construction of a new testing facility in the United States and the procurement of related equipment, with the goal of achieving large-scale mass production in April 2027. In Singapore, the expanded testing business is expected to begin large-scale mass production in February 2027.

Optical Engine Capacity Expected to Increase 15-Fold by Mid-2027

In the field of optical interconnect, NVIDIA will cooperate with SPIL to expand manufacturing capacity in Taiwan, China for optical engines used in co-packaged optics (CPO). NVIDIA stated that as demand for high-speed interconnect continues to grow in large-scale computing infrastructure, optical engines will play an important role in meeting related connectivity needs. The goal of this expansion plan is to increase optical engine capacity to 15 times the current level by mid-2027, and to strive to double capacity again by the end of 2028.

This article is reproduced from media reports or online platforms and represents the author's personal position or views. Our republication is solely for sharing and does not mean that we approve of or endorse it. If the source attribution is incorrect or your lawful rights and interests are infringed, please contact customer service promptly, and we, as a neutral platform service provider, will promptly correct, delete or handle it in accordance with the law. Comments No user comments yet Latest News More Related Recommendations

Canon lithography machines, capacity to be another 50% higher in 2029 2026-10-22 17:33

Server CPUs, shipments will still surge 40% next year 2026-10-22 17:32

TI financial results released, analog chips are recovering 2026-10-22 17:30