# Nvidia signs supplier deals to triple AI chip capacity by 2028

Digest AI · Hardware & Compute · published 2026-10-28T07:20:00Z

Canonical: https://digestai.news/story/nvidia-signs-supplier-deals-to-triple-ai-chip-capacity-by-2028

## Summary

Nvidia has announced agreements with six suppliers to expand manufacturing capacity for its AI systems, citing extraordinary demand and capacity constraints. The chipmaker stated that these deals are part of the largest infrastructure buildout in human history, according to a press release dated October 21.

The agreements cover three main areas: substrates, advanced packaging, and optical engines. For substrates, Nvidia partnered with Ibiden, Samsung Electro-Mechanics, and Unimicron Technology Corp. to increase aggregate manufacturing capacity by 2.5 times over three years. Samsung Electro-Mechanics will build new factories in South Korea, while Unimicron will expand in Taiwan, reaching full capacity by mid-2028. Ibiden is receiving a multibillion-dollar reservation for a plant expansion in Japan that aims to triple its current capacity.

In advanced packaging, Amkor Technology will increase its capacity to process interposer-containing wafers by 300% by the end of 2028. King Yuan Electronics Co. (KYEC) will use $1.1 billion from Nvidia to build new U.S. testing facilities, with high-volume production starting in April 2027. Finally, Siliconware Precision Industries plans to expand its Taiwan manufacturing capacity for optical engines 15-fold by mid-2027, with a further doubling targeted by the end of 2028.

## Key points

- Nvidia signed deals with six suppliers to boost AI system capacity.
- Substrate capacity will increase 2.5 times in aggregate over three years.
- Nvidia provided $1.1 billion to King Yuan Electronics for U.S. testing facilities.

## Why it matters

These agreements address the primary bottleneck in AI adoption: hardware supply. By securing substrate, packaging, and optical engine capacity, Nvidia aims to meet the massive demand for AI training and inference systems, potentially accelerating the deployment of large-scale AI infrastructure globally.

## Sources

1. [Nvidia forges supplier agreements to expand capacity for AI](https://finance.yahoo.com/technology/ai/articles/nvidia-forges-supplier-agreements-expand-142020989.html) (finance.yahoo.com, 2026-10-28)

## Cite

Digest AI, "Nvidia signs supplier deals to triple AI chip capacity by 2028", 28 October 2026, https://digestai.news/story/nvidia-signs-supplier-deals-to-triple-ai-chip-capacity-by-2028

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