NVIDIA announced it has signed large-scale capacity expansion agreements with six core suppliers—Amkor, IBIDEN, KYEC, Samsung Electro-Mechanics, SPIL, and Unimicron—to address the explosive growth in AI hashrate demand. The agreements cover critical areas such as substrates, advanced packaging, semiconductor testing, and optical engines, with plans to increase substrate capacity by 2.5 times within the next three years. Specifically, NVIDIA will provide KYEC with an $1.1 billion prepayment for capacity reservation and IBIDEN with billions of dollars in prepayments. Advanced packaging capacity is targeted to increase by over 300% by the end of 2028, total semiconductor testing capacity is expected to double between 2026 and 2027, and co-packaged optical engine capacity is planned to expand 15-fold by mid-2027 and double again by the end of 2028. NVIDIA CEO Jensen Huang stated that demand is extraordinary, and capacity is the bottleneck.