Nvidia funds suppliers to ease chip production bottlenecks

Nvidia is making advance payments and expanding supplier agreements to secure manufacturing capacity for AI infrastructure. Its partnerships cover Samsung Electro-Mechanics, Ibiden, Amkor Technology, King Yuan Electronics Co. (KYEC), Siliconware Precision Industries (SPIL) and Unimicron, addressing constraints across substrates, advanced packaging, testing and co-packaged optics (CPO).

Agreements with Ibiden, Samsung Electro-Mechanics and Unimicron aim to increase semiconductor package substrate production capacity 2.5-fold over the next three years. Nvidia has reserved several billion dollars worth of capacity at Ibiden, supporting plans to triple output at its Ono plant in Japan, with additional capacity expected to begin full-scale operations in the first quarter of 2028. Nvidia will also support equipment upgrades and a new factory for Samsung Electro-Mechanics, alongside Unimicron’s Taiwan expansion.

Amkor plans to increase interposer wafer production capacity in Gwangju, South Korea, by more than 300% by the end of 2028. Nvidia has committed $1.1 billion in advance payments to reserve capacity at KYEC. Facility expansions in the United States, Taiwan and Singapore will double total semiconductor testing capacity in 2027 from the 2026 level.

SPIL will expand optical engine production capacity for CPO in Taiwan to secure next-generation optical signal components. Capacity will increase 15-fold by mid-2027 and double again by the end of 2028.