Nvidia backs supplier expansions to ease AI chip shortages
Nvidia is investing in suppliers and reserving production capacity to address shortages of the components needed to make GPUs and AI processors. Announced at its Berlin GTC event, the agreements signal that the company expects demand for AI infrastructure to remain strong and sees supply constraints as a key obstacle.
Nvidia plans to increase substrate capacity for its products by 2.5 times over three years, adding Samsung Electro-Mechanics alongside existing supplier IBIDEN and Taiwan’s Unimicron. It also agreed to support a 300 per cent capacity expansion at packaging firm Amkor and aims to help optics supplier SPIL increase capacity 15-fold by mid-2027, then double it again by the end of 2028.
- Nvidia is funding supply-chain expansion to secure components for AI hardware.
- Substrate capacity for its products is set to rise 2.5 times.
- Agreements also target bigger packaging and optical connector output.
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Originally published by The Register as “To help world gorge on GPUs, Nvidia brings cash bucket to fatten wafer-thin supply chain”.