SANTA CLARA (dpa-AFX) - NVIDIA Corp. (NVDA), an AI technology firm, on Wednesday announced that it is working with six supply chain partners to expand global manufacturing capacity to meet rising demand for AI infrastructure.
The company is collaborating with Amkor Technology, IBIDEN, King Yuan Electronics (KYEC), Samsung Electro-Mechanics, Siliconware Precision Industries (SPIL) and Unimicron Technology Corp. to increase capacity for substrates, advanced packaging, semiconductor testing and optical engines.
IBIDEN with NVIDIA is expanding its Ono plant in Japan, with additional capacity expected to begin ramping up in the first quarter of 2028.
Samsung Electro-Mechanics is joining NVIDIA's substrate supply chain with existing capacity in South Korea and plans to upgrade facilities and build new factories in Sejong and Busan.
Unimicron's substrate expansion in Taiwan is expected to begin adding capacity in the second quarter of 2027 and reach full capacity by mid-2028.
NVIDIA and Amkor also plan to increase interposer wafer capacity in South Korea by more than 300% by the end of 2028.
Additionally, a $1.1 billion capacity reservation advance from NVIDIA to KYEC will support new U.S. testing facilities and equipment, with high-volume production targeted for April 2027. Expanded testing operations in Singapore are expected to begin high-volume production in February 2027.
NVIDIA and SPIL are also expanding production of optical engines in Taiwan. The companies are targeting a 15x increase in capacity by mid-2027, with plans to double it again by the end of 2028.
In pre-market activity, the shares were trading 405 cents or 1.87 percent higher at $220.52 on the Nasdaq.
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