# Nvidia commits $1.1 billion advance for US chip testing expansion

_Published Wednesday, October 21, 2026 at 6:50 AM EDT · Infrastructure, AI · Latest · Tier 1 — Major_

![NVIDIA Supply Chain Partners — Primary](https://iprsoftwaremedia.com/219/files/202610/838aa4d001648c2167fc8aefd1fece2d/6ad82edd3d63326362cb7557_nvidia-supply-chain-partners/nvidia-supply-chain-partners_36c8cb14-8132-4255-b769-8a5888a05a29-prv.jpg?v=36c8cb14-8132-4255-b769-8a5888a05a29)

Nvidia announced a $1.1 billion capacity reservation advance to KYEC to support new US semiconductor testing facilities and equipment, with high-volume production targeted for April 2027. The commitment forms part of a broader supplier expansion across substrates, packaging, testing and optical components.

Nvidia plans to increase substrate capacity for its products by 2.5x over the next three years. Samsung Electro-Mechanics is joining its substrate supply chain with immediate South Korean capacity, while Unimicron's Taiwan expansion is expected to start adding capacity in the second quarter of 2027. Nvidia expects total testing capacity to double from calendar 2026 to 2027.

## Sources

- [News Releases - NVIDIA Newsroom](https://nvidianews.nvidia.com/news/nvidia-and-supply-chain-partners-expand-capacity-to-accelerate-ai-infrastructure-buildout)

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Canonical: https://techandbusiness.org/newswire/eVnn3jSed_7e_phqP9De5t
Published: 2026-10-21T10:50:57.750Z
Story chronology: 2026-10-21T10:33:00.000Z
Retrieved: 2026-10-25T06:17:46.227Z
Publisher: Tech & Business (techandbusiness.org)