Nvidia taps six Asian suppliers to expand chip packaging capacity

Nvidia announced on October 28 that it is partnering with Amkor Technology, Ibiden, KYEC, Samsung Electro-Mechanics, SPIL and Unimicron Technology to expand capacity for substrates, advanced packaging, testing and optical engines.

The company plans to increase substrate production capacity 2.5 times over the next three years. Ibiden is expanding its Ono plant in Japan under a contract signed earlier this year, with Nvidia providing multi-billion-dollar capacity prepayments; the plant's capacity will grow to three times current levels, with additional output ramping from the first quarter of 2028.

Samsung Electro-Mechanics is joining Nvidia's substrate supply chain, including upgrades to its Sejong and Busan facilities and cooperation on new plants. Volume allocated to Nvidia by 2028 is expected to take a significant share of its annual package substrate capacity, according to digitaltoday.co.kr.

In Taiwan, Unimicron received an Nvidia capacity reservation contract for KF substrate expansion, with additional output from the second quarter of 2027 reaching its maximum by mid-2028. Amkor aims to increase interposer wafer capacity in Korea by more than 300% by the end of 2028.

KYEC will build new US test facilities and equipment using an Nvidia capacity reservation prepayment of 1.1 billion USD, targeting mass production in April 2027, while its Singapore expansion is expected to enter mass production in February 2027. SPIL aims to increase its optical engine capacity for co-packaged optics in Taiwan 15-fold by mid-2027 and double it again by the end of 2028.

Nvidia expects its semiconductor testing and optical technology capacity in the US, Taiwan and Singapore to double by 2027.