New Capacity Agreements and Manufacturing Facilities to Bolster Volume Expansion and Fortify Supply Chain Resilience
News Overview:
- Substrate agreements with IBIDEN, Samsung Electro-Mechanics, and Unimicron Technology Corporation are anticipated to yield a collective 2.5-fold increase in capacity over the subsequent three years.
- Amkor intends to augment its advanced packaging capacity by over 300% by the conclusion of 2028.
- KYEC is set to construct new facilities in the United States, bolstered by a $1.1 billion capacity reservation advance from NVIDIA.
- SPIL aims to amplify its optical-engine capacity for co-packaged optics by 15-fold by mid-2027, with plans for further doubling by the end of 2028.
GTC Berlin—NVIDIA has unveiled ambitious plans, in collaboration with a consortium of supply chain partners, to expand global manufacturing capabilities to accommodate the surging demand for its accelerated computing and comprehensive AI factory platform.
By partnering with Amkor Technology, IBIDEN, King Yuan Electronics (KYEC), Samsung Electro-Mechanics, Siliconware Precision Industries (SPIL), and Unimicron Technology Corporation, NVIDIA is facilitating both new and existing suppliers in enhancing vital manufacturing capabilities across substrates, advanced packaging, testing, and optical engines—ultimately reinforcing the resilience and redundancy of NVIDIA’s international supply chain.
“We are witnessing the largest infrastructure expansion in human history. The demand is unparalleled. Capacity is the limiting factor,” remarked Jensen Huang, founder and CEO of NVIDIA.
“Our supply chain partners rank among the premier manufacturers globally. I am grateful for their endeavors to enhance capacity worldwide, enabling us to scale production and deliver the AI supercomputing systems fueling this new industrial era.”
Augmenting Substrate Capacity to Facilitate Volume Growth
NVIDIA is poised to amplify substrate capacity for its offerings by 2.5 times within the next three years. The agreements outlined below will significantly contribute to this capacity augmentation, with additional progress anticipated.
Per an agreement revealed earlier this year, NVIDIA is providing a multibillion-dollar capacity reservation advance to IBIDEN, supporting the expansion of its Ono Plant in Japan.
This initiative seeks to enhance capacity to three times current levels at the facility, with additional capabilities expected to commence ramping up in the first quarter of 2028.
Samsung Electro-Mechanics is now integrated into NVIDIA’s substrate supply network, delivering immediate capacity from its current operations in South Korea.
This collaboration also encompasses facility upgrades and the establishment of new plants in Sejong and Busan, South Korea.
By 2028, production earmarked for NVIDIA is projected to represent a substantial segment of Samsung Electro-Mechanics’ overall annual package substrate output capacity.
NVIDIA is also supporting Unimicron’s KF substrate manufacturing expansion in Taiwan with a capacity reservation agreement.
This initiative is expected to commence contributing additional capacity in the second quarter of 2027, achieving full operational capacity by mid-2028.
Enhancing Advanced Packaging for Next-Generation Platforms
NVIDIA and Amkor are collaborating to expand advanced packaging capabilities in South Korea, aiming for an enhancement of more than 300% in interposer wafer production capacity by the end of 2028.
This planned capacity increase, combined with Amkor’s development of new manufacturing facilities in South Korea, will facilitate elevated production volumes for both current and upcoming NVIDIA platforms.
Elevating Semiconductor Testing and Reinforcing U.S. Manufacturing
NVIDIA anticipates its total semiconductor testing capacity to double from calendar years 2026 to 2027, supported by expansions in the United States, Taiwan, and Singapore.
The $1.1 billion capacity reservation advance dedicated to KYEC will propel the establishment of new testing facilities and equipment in the U.S., with high-volume production targeted for commencement in April 2027.
In Singapore, enhanced testing operations are projected to initiate high-volume production by February 2027.
Establishing Infrastructure for Co-Packaged Optics
NVIDIA and SPIL are set to bolster manufacturing capabilities in Taiwan for optical engines utilized in co-packaged optics, responding to the escalating connectivity demands of vast computing infrastructures.
The expansion aims for a 15-fold increase in capacity by mid-2027, with aspirations for a subsequent doubling by the end of 2028
Source link: Nvidianews.nvidia.com.
