MyTechDailyNews General: Inside NVIDIA's Global Push to Expand AI Hardware Manufacturing

For general readers, this update is less about a single product and more about the manufacturing layer behind AI systems. NVIDIA has announced a supply-chain effort to broaden global manufacturing capacity as demand rises for accelerated computing and a full-stack AI factory platform. MyTechDailyNews General breaks down the move through the stated capacity targets, locations and dates: substrate capacity is set to grow 2.5x in three years, while semiconductor testing capacity is expected to double from 2026 to 2027.

The companies named in the plan are Amkor Technology, IBIDEN, King Yuan Electronics (KYEC), Samsung Electro-Mechanics, Siliconware Precision Industries (SPIL) and Unimicron Technology Corporation. Their work spans substrates, advanced packaging, testing and optical engines in Japan, South Korea, Taiwan, US and Singapore. According to the announcement, this helps new and existing suppliers broaden key manufacturing capabilities and strengthens resiliency and redundancy in NVIDIA's global supply chain.

Capacity snapshot: what changes, where, and when

Area	Stated target	Timing to watch
Substrates	2.5x capacity for NVIDIA's products within the next three years	first quarter of 2028; second quarter of 2027; mid-2028
Advanced packaging	greater than 300% increase in interposer wafer capacity	By 2028; end of 2028
Testing	total semiconductor testing capacity expected to double	February 2027; April 2027
Optical engines	15x for co-packaged optics, then another doubling	mid-2027; end of 2028

That table is a quick orientation, not a new claim. It keeps the original plan's numbers, names and places in one view, so readers can move from the headline capacity changes to the individual supplier updates without getting lost in a longer narrative.

Substrate capacity: three years of added output

The substrate objective is a 2.5x increase in capacity for NVIDIA's products over the next three years. More agreements are in progress.

The IBIDEN portion was signed and announced earlier this year. It involves a multibillion-dollar capacity reservation advance from NVIDIA to support IBIDEN's Ono Plant in Japan. Capacity at the plant is targeted at 3x current levels, and extra capacity should begin ramping in the first quarter of 2028.

Samsung Electro-Mechanics adds immediate capacity from existing operations in South Korea. Its part of the collaboration also covers facility upgrades and new factories in Sejong and Busan, South Korea. By 2028, production allocated to NVIDIA is projected to represent a significant portion of Samsung Electro-Mechanics' total annual package substrate production capacity.

Unimicron's KF substrate manufacturing expansion in Taiwan is tied to a capacity reservation agreement backed by NVIDIA. Capacity additions are expected to start in the second quarter of 2027, with full capacity by mid-2028.

For a general reader, the practical takeaway from this section is that substrates are one of the first bottlenecks the plan addresses. They are not a single chip, but they are part of the manufacturing path that makes large-scale computing hardware more available.

Advanced packaging: more than 300% for interposer wafer capacity

The advanced packaging side centers on South Korea. NVIDIA and Amkor intend to add capacity there, with a stated target of a greater than 300% increase in interposer wafer capacity by the end of 2028. Amkor is also developing new manufacturing facilities in South Korea. The combined expansion is expected to support higher production volumes for NVIDIA's current and next-generation platforms.

This part of the plan matters because packaging is where individual chips become usable pieces of a larger computing system. The stated goal is not just to assemble more units in one place, but to support a broader manufacturing footprint across the supply chain.

Testing: capacity doubles while US and U.S. operations broaden

The company expects total semiconductor testing capacity to double from calendar 2026 to 2027. That buildout will be supported by facilities in the U.S., Taiwan and Singapore.

A $1.1 billion capacity reservation advance to King Yuan Electronics (KYEC) is earmarked for new U.S. testing facilities and equipment. Targeted high-volume production starts in April 2027.

In Singapore, expanded testing operations are expected to enter high-volume production in February 2027. The effort also strengthens US manufacturing.

For non-specialist readers, testing can be understood as the quality-and-yield step before AI hardware reaches customers at scale. A stated doubling within a single calendar-year window shows why the plan is positioned as an urgent capacity move rather than a routine supplier refresh.

Optical engines: 15x by mid-2027 for co-packaged optics

NVIDIA and Siliconware Precision Industries (SPIL) intend to expand manufacturing capacity in Taiwan for optical engines used in co-packaged optics. The expansion supports growing connectivity requirements for large-scale computing infrastructure. The stated target is 15x by mid-2027, followed by another doubling by the end of 2028.

This is the part of the story that connects AI computing to networking and data movement. Large deployments do not only need compute capacity; they also need the interconnect hardware that carries information between systems. The SPIL plan addresses that side of the infrastructure.

FAQ: What MyTechDailyNews readers should know

• Is this only about one product? No. The plan is described as responding to rising demand for NVIDIA's accelerated computing and full-stack AI factory platform, and it covers substrates, advanced packaging, testing and optical engines.
• Which suppliers are named? Amkor Technology, IBIDEN, King Yuan Electronics (KYEC), Samsung Electro-Mechanics, Siliconware Precision Industries (SPIL) and Unimicron Technology Corporation.
• Which regions are included? Japan, South Korea, Taiwan, US and Singapore, with the U.S. receiving additional testing capacity.
• What are the clearest capacity signals? Substrate capacity to grow 2.5x in three years, testing capacity to double from 2026 to 2027, interposer wafer capacity to rise greater than 300% by the end of 2028, and optical-engine capacity to increase 15x by mid-2027, followed by another doubling.
• Does the plan claim to improve supply-chain risk? The announcement says the work helps new and existing suppliers broaden key manufacturing capabilities and strengthens the resiliency and redundancy of NVIDIA's global supply chain.

Common misconceptions about the announcement

• It is not just a single factory expansion. The named work spans multiple stages: substrates, advanced packaging, testing and optical engines, with capacity steps across Japan, South Korea, Taiwan, US and Singapore.
• It is not one launch date. The plan uses staged timing: second quarter of 2027 and April 2027 for testing and substrate additions, February 2027 for Singapore testing, first quarter of 2028 for IBIDEN ramping, mid-2028 for Unimicron full capacity, and end of 2028 for packaging and optical targets.
• It is not only about selling more chips. The stated goal is to broaden manufacturing capabilities in response to demand for accelerated computing and a full-stack AI factory platform.

Checklist: Key numbers, partners and dates

• 2.5x in three years: substrate capacity growth target for NVIDIA products.
• the next three years: the stated period for the broader substrate capacity objective.
• 3x current levels: IBIDEN's Ono Plant capacity aim, with ramping expected in the first quarter of 2028.
• By 2028: Samsung Electro-Mechanics' allocated NVIDIA production projected to be a significant portion of total annual package substrate production capacity.
• second quarter of 2027 to mid-2028: Unimicron's KF substrate expansion in Taiwan starts adding capacity and then reaches full capacity.
• greater than 300% by the end of 2028: Amkor's advanced packaging target in South Korea for interposer wafer capacity.
• $1.1 billion: capacity reservation advance to King Yuan Electronics (KYEC) for new U.S. testing facilities and equipment, targeted for April 2027.
• double from calendar 2026 to 2027: total semiconductor testing capacity expectation, supported by the U.S., Taiwan and Singapore.
• February 2027: Singapore expanded testing operations expected to enter high-volume production.
• 15x by mid-2027, then another doubling by the end of 2028: Siliconware Precision Industries (SPIL) optical-engine expansion in Taiwan.
• US manufacturing: the effort is described as strengthening US manufacturing.

Action advice for tech watchers

Use this MyTechDailyNews General summary as a tracking sheet rather than a one-time news note. The practical way to follow the story is to separate the three layers that the plan touches: capacity, location and timing. If you are covering technology for a team, product, market or general interest, that breakdown gives a clearer reading of what is moving now and what is scheduled later.

For now, the most reliable signals are the stated numbers and checkpoints already in the announcement: 2.5x substrate capacity in three years, a $1.1 billion testing advance for KYEC, a greater than 300% advanced packaging target, a 15x optical-engine target by mid-2027, and dates spread from February 2027 to the end of 2028. The broader point is that AI manufacturing is becoming a supply-chain story, not just a product announcement story, and MyTechDailyNews General will keep that framing front and center for readers.