NVIDIA Plans to Double Its Chip-Testing Capacity in 2027

NVIDIA plans to double its semiconductor testing capacity in calendar 2027, supported by a $1.1 billion advance for U.S. facilities as it works to expand the supply of AI hardware.

The target compares NVIDIA’s total testing capacity with calendar 2026. Planned expansion in the United States, Taiwan and Singapore is intended to give the company more capacity to test chips before they enter service.

NVIDIA has committed the advance to King Yuan Electronics (KYEC) to reserve future testing services. KYEC and its U.S. subsidiary will add facilities and equipment for that work, then apply the upfront payment against service charges as testing is delivered.

The $1.1 billion payment is separate from KYEC’s July authorization to invest up to $1.4 billion in a U.S. plant. The larger figure is a ceiling on KYEC’s planned investment, while NVIDIA’s advance pays toward future services.

The expansion also covers advanced packaging. Amkor Technology announced a $1.3 billion capacity agreement in South Korea on Oct. 21, following a $1.5 billion multiyear U.S. packaging agreement in July. Together, NVIDIA and Amkor target more than 300% growth in interposer wafer capacity by the end of 2028.

The KYEC and Amkor agreements address different stages of chip production. Testing capacity is NVIDIA’s nearer-term target for 2027; the interposer wafer goal extends through 2028. Both depend on suppliers bringing planned capacity into operation.

The commitments come as NVIDIA projects approximately 70% revenue growth in fiscal 2028. The company has described that outlook as constrained by supply. “Demand is extraordinary. Capacity is the constraint,” NVIDIA founder and CEO Jensen Huang said.

Expanded testing operations in Singapore are expected to begin high-volume production in February 2027. KYEC’s new U.S. facilities are targeted to begin high-volume production in April 2027.