Nvidia announced plans to expand its silicon substrate and advanced packaging supply chain by investing in key suppliers, aiming to secure production capacity amid growing demand for AI hardware. The company will increase substrate capacity for its products by 2.5 times over the next three years, with new agreements involving Samsung’s Electro-Mechanics division, IBIDEN, Unimicron, and Amkor. These partnerships include capacity reservations and plant expansions, such as a planned tripling of output at an IBIDEN facility and a 300% increase in production capacity at Amkor. Nvidia also announced an expansion of its collaboration with SPIL, targeting a 15-fold increase in optical connector manufacturing capacity by mid-2027, with further growth expected by the end of 2028. Executives have emphasized that current capacity constraints, rather than demand, are the primary bottleneck in meeting AI hardware needs. The moves reflect a broader strategy to stabilize and diversify the supply chain for critical components used in AI processors and graphics chips.