The U.S. chip designer struck capacity deals with six suppliers in substrates, packaging, testing and optics, aiming to raise substrate supply 2.5 times over three years.
Samsung Electro-Mechanics announced Wednesday that it will build jointly funded lines in Sejong and Busan and start shipping this year.
"Demand is extraordinary. Capacity is the constraint," Nvidia Chief Executive Jensen Huang said in a statement released during the company's GTC Berlin event on Wednesday.
Nvidia is giving Japan's Ibiden a multibillion-dollar advance to reserve capacity at its Ono plant, and Taiwan's King Yuan Electronics $1.1 billion to support new U.S. testing facilities.
Amkor Technology will expand advanced packaging in South Korea, targeting a more than 300 percent increase in interposer wafer capacity by the end of 2028.
Nvidia orders are projected to account for a significant share of Samsung Electro-Mechanics' total package substrate capacity by 2028, the companies said.
The Korean firm plans to embed its own capacitors in the substrates to curb power noise. In September, it approved a 4.27 trillion won ($3.21 billion) expansion of its Sejong plant.
The deals add to Nvidia's commitments in the country, where it pledged last October to supply more than 260,000 GPUs to the government and companies including Samsung, SK and Hyundai.
AJP Takeaways
- Nvidia announced capacity agreements with six suppliers on Oct. 21, 2026. The deals cover substrates, packaging, testing and optics, and aim to raise substrate supply 2.5 times over three years.
- Samsung Electro-Mechanics will supply Nvidia with AI chip substrates from 2026 under a multiyear deal. The two companies are jointly funding dedicated lines at the Sejong and Busan plants.
- Amkor Technology will expand advanced packaging in South Korea, targeting a more than 300 percent increase in interposer wafer capacity by the end of 2028.
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