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NVIDIA Mobilizes Six Suppliers to Expand Global Manufacturing Capacity Amid AI Boom

October 21, 2026 at 10:54 EDT

Infra & Chips
Foundation Models
Sales & Business

NVIDIA is partnering with six suppliers to dramatically expand manufacturing capacity for advanced chip components, betting that demand for AI computing will remain constrained by supply for years. The company announced on October 21 agreements with Amkor Technology, IBIDEN, King Yuan Electronics (KYEC), Samsung Electro-Mechanics, Siliconware Precision Industries (SPIL), and Unimicron Technology to increase substrate, packaging, testing, and optical-engine production globally. CEO Jensen Huang characterized the moment: "We are in the midst of the largest infrastructure buildout in human history. Demand is extraordinary. Capacity is the constraint."

AI Infrastructure · October 21, 2026

NVIDIA Expands Chip Supply to Meet AI Boom

Six suppliers commit to 2.5x substrate, 300% packaging, and 15x optical-engine capacity expansions over the next two years.

2.5×

Substrate capacity over 3 years

300%+

Advanced packaging by 2028

15×

Optical-engine growth by mid-2027

$1.1B

KYEC U.S. test facility advance

Partnership Timeline

Q2 2027: Unimicron substrate additions begin

Feb 2027: KYEC Singapore testing high-volume production

Apr 2027: KYEC U.S. testing high-volume production

Mid-2027: SPIL optical-engine capacity reaches 15×

Q1 2028: IBIDEN 3× substrate capacity ramping

The Constraint

CEO Jensen Huang: "Demand is extraordinary. Capacity is the constraint." Testing, substrates, advanced packaging, and high-bandwidth memory remain the limiting factors in delivering AI accelerators to data centers worldwide.

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