ItInsightsWorld General: Inside NVIDIA's Global AI Manufacturing Scale-Up Across Substrates, Testing and Optics

The supplier plan attached to NVIDIA now maps production growth across substrates, advanced packaging, testing and optical engines, reflecting elevated demand for accelerated computing and full-stack AI factory platforms.

The headline targets are substrate capacity growth of 2.5x in three years and semiconductor testing capacity that is expected to double from 2026 to 2027.

Substrate capacity, advanced packaging and testing targets

Over the next three years, NVIDIA aims to lift substrate capacity by 2.5x. In an agreement signed and announced earlier this year by IBIDEN, NVIDIA extends a multibillion-dollar capacity reservation advance to support IBIDEN's Ono Plant in Japan. The plant expansion aims for capacity reaching 3x current levels, and additional capacity is expected to begin ramping in first quarter of 2028.

Samsung Electro-Mechanics contributes immediate capacity from existing operations in South Korea, while the collaboration also backs facility upgrades and new factories in Sejong and Busan, South Korea. By 2028, production allocated to NVIDIA is projected to represent a significant portion of Samsung Electro-Mechanics' total annual package substrate production capacity.

NVIDIA is backing Unimicron in its KF substrate manufacturing expansion in Taiwan through a capacity reservation agreement. The plan involving Unimicron Technology Corporation is expected to begin adding capacity in second quarter of 2027 and reach full capacity by mid-2028.

Advanced packaging capacity in South Korea

NVIDIA and Amkor intend to expand advanced packaging capacity in South Korea, targeting greater than 300% growth in interposer wafer capacity by end of 2028. Amkor Technology's development of new manufacturing facilities in South Korea will support higher production volumes for NVIDIA's current and next-generation platforms.

Testing buildouts across US, Taiwan and Singapore

NVIDIA expects total semiconductor testing capacity to double from calendar 2026 to 2027, with buildouts in the U.S., Taiwan and Singapore providing support. NVIDIA's $1.1 billion capacity reservation advance to King Yuan Electronics (KYEC) will support new U.S. testing facilities and equipment, and high-volume production is targeted for April 2027. Expanded testing operations in Singapore are expected to begin high-volume production in February 2027. The effort also strengthens US manufacturing.

Co-packaged optics capacity in Taiwan

NVIDIA and Siliconware Precision Industries (SPIL) intend to expand manufacturing capacity in Taiwan for optical engines used in co-packaged optics, supporting the growing connectivity requirements of large-scale computing infrastructure. The expansion targets an increase of 15x by mid-2027, with aims for another doubling by the end of 2028.

Taken together, the agreements convert capacity reservations, plant development and testing buildouts into a more resilient global production network around NVIDIA.