NVIDIA Partners Expand Substrate and Packaging Capacity for AI Chips

NVIDIA is working with IBIDEN, Samsung Electro-Mechanics, Unimicron, Amkor, KYEC and SPIL to lift substrate capacity 2.5x over three years. Targets include IBIDEN's Ono Plant in Japan reaching 3x current levels, Amkor's interposer wafer capacity rising more than 300% by end-2028 in South Korea, and SPIL's co-packaged optics optical-engine capacity rising 15x by mid-2027. KYEC will build new U.S. facilities backed by a $1.1 billion capacity reservation advance from NVIDIA.

Key facts

Market context

Organic package substrates are multilayer laminate boards, typically built from epoxy-based resins reinforced with glass cloth and loaded with fillers, that connect a chip to the printed circuit board beneath it. Interposers, usually silicon or glass, sit between dies and substrates to route high-density signals, while co-packaged optics place optical engines beside switch silicon to move data over fiber. Demand for these inputs is driven mainly by data center buildouts, where high-performance accelerators need large, complex packages. Because substrate and interposer lines are slow to qualify and build, capacity additions like these tend to change supply gradually, and they can shift purchasing toward suppliers with proven advanced-packaging qualifications. Buyers of resins, copper foil, glass cloth, underfill and photoresist chemistries may see sustained orders as these lines ramp, while tightness in specialty laminates and related process chemicals can persist until new output is fully qualified.

Source: official release on nvidianews.nvidia.com. Summary and context written by Market Krystal.