# NVIDIA Plans $1.1 Billion Advance for U.S. Chip Testing Sites By John Kim Canonical URL: https://www.tokenpost.com/news/business/37501 Published: 2026-10-22T05:10:40.000Z Updated: 2026-10-22T05:10:40.000Z Section: Business > The capacity-reservation advance to KYEC is part of a global buildout spanning substrates, advanced packaging and optical engines, with production milestones through 2028. NVIDIA announced a $1.1 billion capacity-reservation advance to KYEC for new semiconductor testing facilities and equipment in the United States. The advance is part of a wider manufacturing expansion aimed at supporting AI infrastructure, with plans covering substrates, advanced packaging, testing and optical engines through 2028. NVIDIA expects its overall semiconductor testing capacity in calendar 2027 to reach twice its 2026 level. The buildout includes operations in the United States, Taiwan and Singapore. High-volume production at the new U.S. facilities is targeted for April 2027, while Singapore operations are scheduled to reach that stage in February 2027. The supplier plans span multiple parts of the production chain across Asia and the United States. The announced projects include substrate expansion in Japan, South Korea and Taiwan, advanced packaging capacity in South Korea, and optical-engine capacity growth with milestones through 2028. Agreements with IBIDEN, Samsung Electro-Mechanics and Unimicron Technology Corporation target a combined 2.5-fold increase in substrate capacity over three years. The 2.5-fold goal applies to the three suppliers together. IBIDEN’s Ono Plant in Japan is expected to begin ramping added capacity in the first quarter of 2028, supported by a multibillion-dollar reservation advance from NVIDIA. Unimicron expects its Taiwan project to begin adding capacity in Q2 2027 and reach its full capacity target by mid-2028. Samsung Electro-Mechanics has immediate capacity from existing South Korean operations, with upgrades and new plants planned in Sejong and Busan. The plans extend [Samsung Electro-Mechanics’ role in NVIDIA’s substrate supply chain](). In South Korea, NVIDIA and Amkor are targeting an increase of more than 300% in interposer wafer capacity by the end of 2028. The expansion includes new manufacturing facilities and is intended to support current and next-generation platforms. SPIL is targeting a 15-fold increase in optical-engine capacity for co-packaged optics by mid-2027, followed by another doubling by the end of 2028. That is the latest stated milestone in the supplier expansion’s timeline. ## Links in this article - [Samsung Electro-Mechanics’ role in NVIDIA’s substrate supply chain](https://www.tokenpost.com/news/business/37101)