NVIDIA to Work With Supply Chain Partners to Boost Production

NVIDIA has announced an initiative to work with its supply chain partners to boost its global manufacturing capacity, to meet the rising demand for components that go into artificial intelligence chips and data center infrastructure.

According to an October 21 release, the company is hoping to increase its manufacturing capacity for the components that support its chips by 2.5 times over the next three years. In service of that goal, NVIDIA has committed billions of dollars to reserve future production at electronics manufacturer IBIDEN’s Japan plant. 

Additionally, Samsung Electro-Mechanics has plans to dedicate a substantial share of its capacity to components for NVIDIA by 2028, while Taiwanese manufacturer Unimicron will look to start adding capacity for NVIDIA starting in the second quarter of 2027. Semiconductor assembler Amkor has also committed to a partnership with NVIDIA to increase its production capacity for interposer wafers — thin slices of material placed between chips — by more than 300% by the end of 2028.

Between 2026 and the end of 2027, NVIDIA expects to double its total semiconductor testing capacity. That will be helped by a $1.1 billion advance to semiconductor tester KYEC, which will support new facilities and equipment in the U.S. NVIDIA is also working with Taiwan’s SPIL to expand production capacity for components that use light to transmit data between computers, targeting 15 times current capacity by mid-2027 and another doubling by the end of 2028.