Nvidia expands chip supply chain with multi-billion dollar support

Nvidia is expanding its collaboration with six suppliers across Japan, South Korea, Taiwan, and the United States to address production bottlenecks and meet the rising demand for artificial intelligence technology. The program, announced in Berlin, focuses on critical areas such as chip packaging, testing, substrates, and optical interconnects.

To secure future capacity, Nvidia is pre-financing new investments from suppliers including Amkor Technology, IBIDEN, King Yuan Electronics (KYEC), Samsung Electro-Mechanics, Siliconware Precision Industries (SPIL), and Unimicron Technology. A primary goal is to increase the supply capacity of chip substrates by 2.5 times over the next three years. For instance, IBIDEN aims to triple its current capacity at its Ono facility in Japan, with new capacity expected by early 2028.