Thailand-based precision sheet-metal manufacturer Jinpao Precision has entered the supply chain of a leading Thailand-based power-management company on the strength of its resilient manufacturing capabilities and highly adaptable product layout strategy. The company is accelerating its expansion in Thailand to capture growing AI demand as it furthers its efforts in high-end power cabinets, backup battery unit (BBU) systems, and energy-storage components. This is a planned expansion; the source does not specify concrete capacity figures or timelines.
power cabinetsbackup battery unit (BBU) systemsenergy-storage componentsJinpao PrecisionDigiTimes AsiaCapacity Change
Taiwan-based high-end precision metal components maker Kuen Tong Technology, a major supplier to a US low-Earth orbit (LEO) satellite operator, is set to list on the Taipei Exchange's Emerging Stock Board on October 29 at a reference price of NT$390 (approx. US$12.03) per share. Riding rising satellite demand, the company plans to expand production capacity in Thailand from 2027 while developing AI server liquid cooling and semiconductor equipment businesses. The expansion remains a plan and the listing date is a scheduled arrangement; the source does not state the cause beyond rising satellite demand.
high-end precision metal componentsAI server liquid coolingsemiconductor equipmentKuen Tong TechnologyDigiTimes AsiaCapacity Change
According to Nikkei, citing industry sources, rising component costs are reportedly prompting leading PC brands including HP, ASUS, and Acer to move part of their production from Thailand and Vietnam back to China, while Dell is also reportedly considering a similar move (reported move, not confirmed as implemented). The stated cause is that surging AI demand drives shortages of memory and storage chips, raising PC bills of materials: per TrendForce, CPU, DRAM, and SSD costs accounted for approximately 68% of a mainstream notebook's BOM in the third quarter of 2026, up from 45% in the first quarter of 2025. The development partially reverses the 'China+1' diversification strategy pursued amid U.S.-China tensions and trade restrictions. TrendForce estimates the share of global notebook production outside China will decline from approximately 24% in 2025 to 21% in 2026, potentially falling below 20% in 2027, and expects global notebook shipments to decline by a low-single-digit percentage in 2027, potentially widening to a high-single-digit rate if elevated DRAM and CPU prices are passed on to consumers. Separately, Quanta reportedly suspended HP notebook production for about a week in September amid a dispute over rising component costs, resuming after further negotiations; servers accounted for over 80% of Quanta's revenue in the second quarter of 2026, and supply chain sources suggest it has gained greater leverage in notebook pricing negotiations. Chinese ODMs (Luxshare, Huaqin Technology, Longcheer Technology) are reportedly offering lower upfront costs, including waiving engineering and tooling fees, and benefit from access to domestically produced memory chips.
memory chipsstorage chipsDRAMHP, ASUS and 11 totalTrendForceCapacity Change
On October 21, during GTC Berlin, Nvidia announced several multi-billion-dollar deals with six major supply chain partners — Ibiden, Unimicron, Samsung Electro-Mechanics, SPIL, Amkor and KYEC — across substrates, advanced packaging, semiconductor testing and optical engines, to expand production capacity and reserve capacity for its AI accelerators; expanded supply is to be available from 2027 through 2028, with commitments and production roadmaps stretching through 2028. For substrates, Nvidia plans to secure 2.5x dedicated substrate capacity over the next three years: it earlier signed a deal to provide a multibillion-dollar capacity reservation advance to support Ibiden's Ono Plant in Japan (targeting 3x the plant's current capacity); the Samsung Electro-Mechanics deal will support facility upgrades and new plants in Busan and Sejong, with Nvidia projected to account for a significant portion of its output by 2028; a capacity reservation agreement with Unimicron supports its substrate expansion in Taiwan, expected to start providing capacity by Q2 2027 and reach full capacity by mid-2028. For co-packaged optics, Nvidia signed with SPIL to expand optical engine production capacity 15x (1,400%) by mid-2027, with plans to double again by the end of 2028. With Amkor, Nvidia targets a more-than-300% increase in interposer wafer capacity by the end of 2028 through advanced packaging expansion in South Korea; Amkor confirmed the deal is worth $1.3 billion, bringing Nvidia's total investment across Amkor's Arizona and South Korea facilities to $3 billion. For testing, on October 13 Nvidia signed a deal to pay KYEC $1.1 billion to reserve testing capacity at KYEC's new $1.4 billion U.S. facility (high-volume production slated to begin in April 2027; Singapore high-volume production expected to begin February 2027), with testing capacity expected to double from calendar 2026 to 2027; KYEC currently handles nearly all of Nvidia's chip testing. Per its August 2026 disclosures, Nvidia had accumulated $279 billion in outstanding supply and manufacturing-capacity commitments by July 2026. All expansion figures are announced plans and targets, not yet realized.
substratesadvanced packaginginterposer wafersNvidia, Ibiden and 7 totalTom's HardwareCapacity Change
On Oct. 21 local time, Nvidia announced that, to meet growing demand for AI infrastructure, it is working with Samsung Electro-Mechanics, Ibiden, Amkor Technology, King Yuan Electronics Co. (KYEC), Siliconware Precision Industries (SPIL) and Unimicron, making advance payments to secure semiconductor packaging substrate, testing and co-packaged optics (CPO) capacity. CEO Jensen Huang said demand is enormous but capacity is constrained. Substrates: Nvidia is expanding agreements with Ibiden, Samsung Electro-Mechanics and Unimicron to increase semiconductor package substrate capacity 2.5-fold over the next three years; Nvidia has reserved several billion dollars worth of capacity at Ibiden with advance payments, aiming to triple capacity at its Ono plant in Japan, with the additional capacity expected to begin full-scale operations in the first quarter of 2028; Samsung Electro-Mechanics will begin supplying next-generation package substrates from its South Korean facilities in 2026, with Nvidia supporting equipment upgrades at its Sejong and Busan plants plus construction of a new factory; Nvidia signed a capacity reservation agreement with Unimicron to expand its KF plant in Taiwan, with capacity beginning to increase in the second quarter of 2027 and expected to reach full utilization by mid-2028. Advanced packaging: Nvidia is working with Amkor to expand capacity in Gwangju, South Korea, planning to increase interposer wafer capacity by more than 300% by the end of 2028. Testing: Nvidia committed $1.1 billion in advance payments to reserve capacity at KYEC; expansion in the United States, Taiwan and Singapore will double total testing capacity in 2027 from the 2026 level, with a new U.S. facility scheduled for mass production in April 2027 and Singapore lines in February 2027. CPO: Nvidia is expanding optical engine capacity for CPO with SPIL in Taiwan, rising 15-fold by mid-2027 and doubling again by the end of 2028. All expansions are planned/expected arrangements, not yet achieved results.
Precision gearmaker Khgears International is expanding into humanoid robot joint components and expects its newly developed differential reducer to enter mass production in 2027. The company said shipments for new projects should remain strong through the fourth quarter of 2026.
NVIDIA announced plans with a group of supply chain partners to expand global manufacturing capacity to meet growing demand for its accelerated computing and full-stack AI factory platform. The partners include Amkor Technology, IBIDEN, King Yuan Electronics (KYEC), Samsung Electro-Mechanics, Siliconware Precision Industries (SPIL) and Unimicron Technology Corporation, with expansion of critical manufacturing capabilities across substrates, advanced packaging, testing and optical engines, covering both new and existing suppliers, to strengthen the resiliency and redundancy of NVIDIA's global supply chain. This is an announced expansion plan only; the source does not indicate the capacity changes have been implemented.
substratesadvanced packagingtestingNVIDIA, Amkor Technology and 7 totalTechPowerUpCapacity Change
Topoint Technology said it is positioning its precision PCB drilling business for rising demand from AI servers, high-performance computing, and high-speed transmission applications. At TPCA Show 2026, the company presented tools and processing technologies for advanced materials, including ABF substrates, quartz cloth, and PTFE, while outlining its capacity expansion in Taiwan and China. The expansion is a plan; the source gives no scale or schedule for the expansion.
Dutch company Prodrive Technologies said at SEMICON West 2026, held at the Moscone Center in San Francisco on Oct. 13 (the event runs Oct. 13 to 15), that it plans to open an office in South Korea between late 2026 and early 2027 to strengthen support for local customers, including Hanwha Semitech, and expand its presence through sales activities. The company said it is recruiting local employees in preparation for the office opening and expects to open "around the end of this year or early next year," considering Dongtan and Pangyo as potential locations. The Korean office will handle sales and customer support, with a small team being recruited; a representative said there are no plans to establish manufacturing facilities in Korea because Korean customers can be supported from Malaysia, China and Europe. Prodrive is also building a new manufacturing facility in Malaysia, operates production sites in the Netherlands, Boston in the US, and China, has sales offices in Japan and Israel, and employs approximately 2,300 people worldwide. It develops modules and provides system integration services for semiconductor equipment manufacturers; in South Korea, Hanwha Semitech collaborated with Prodrive to develop a hybrid bonder, and earlier this year the second-generation hybrid bonder, SHB2 Nano, was manufactured and assembled at Prodrive's Netherlands facility before being brought to South Korea. Prodrive also supplies linear motors and servo drives for magnetic levitation systems used in ASML's extreme ultraviolet (EUV) lithography equipment.
Foxconn and Nvidia are jointly investing in precision assembly automation research to reduce manual handling, driven by US manufacturing constraints on labor and capacity.
AI ServersFoxconn, NvidiaDigiTimes AsiaCapacity Change
Toshiba plans a 60 billion JPY investment to double AI data center HDD capacity by FY2027. Driven by AI infrastructure demand and SSD shortages, the HDD market remains tight. Bearish: Capacity expansion signals future supply relief, pressuring current tight prices.
Hard Disk Drives (HDD)Nearline HDDsToshiba, Western Digital and 3 totalTrendForceCapacity Change
Taiwan's precision manufacturing sector is shifting from parts to actuator modules to serve the US humanoid robot supply chain. As the industry moves closer to mass production, Taiwan gains new opportunities to enter the US market. Bullish: Increased demand for precision components and actuator modules.
Siliconware Precision Industries (SPIL) broke ground on a new plant in Douliu with a 100 billion NT$ investment to introduce CoWoS technology, targeting initial operations in 2028. This capacity expansion is driven by surging AI and HPC demand. Bearish: The announced capacity increase will likely alleviate future supply shortages, exerting downward pressure on prices.
Siliconware Precision Industries, ASE Technology HoldingDigiTimes AsiaCapacity Change
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Siliconware Precision Industries, ASE Technology Holding
Goertek's AR optical wafer fab in Shanghai commenced production on June 22, 2026, with a total investment of 3.28 billion CNY. This facility, formerly Sunny OmniLight, focuses on AR waveguide lenses and advanced optical components. Bearish for AR optics prices as new supply capacity enters the market.
Largan Precision plans to launch an automated FA pilot line in September to expand into CPO, with potential revenue contribution starting in 2027. As an Apple lens supplier, this diversifies their portfolio into advanced packaging. Impact: Watch (Future capacity and technology milestone).
CPOLargan PrecisionTrendForce Official (Market Data)Capacity Change
Chunghwa Precision Test Tech. completed its board reshuffle on May 27, 2026, and announced a rapid capacity expansion plan for AI chip testing over the next two to three years. This strategic move aims to capitalize on the surging demand for AI chips. The restructuring and expansion signal a bullish outlook for the company's testing services.
AI Chip TestingWafer TestingChunghwa Precision Test Tech.DigiTimes AsiaCapacity Change
iSABers secured 500M RMB for bonding equipment, while TBSTest raised 1.2B RMB for ATE. These investments bolster China's advanced packaging and testing capabilities.
Bonding EquipmentATEHybrid Bonding ToolsiSABers, TBSTest Technology and 6 totalTrendForceCapacity Change
Chunghwa Precision Test broke ground on a new plant in Taoyuan on March 20 to expand probe card production capacity. The expansion targets rising testing demand driven by AI chips. Neutral: This is a long-term supply-side capacity increase for a niche equipment segment, unlikely to cause immediate price movements for electronic components.
probe cardssemiconductor test equipmentChunghwa Precision TestDigiTimes AsiaCapacity Change
Hon Precision has raised its 2026 production expansion target for AI chip test equipment from 30% to over 40% annually due to surging demand. The company's AI chip-related orders are currently exceeding its existing capacity. Bullish: This signals persistent supply constraints in the advanced semiconductor test sector, potentially extending lead times and supporting equipment pricing.
AI Chip Test EquipmentHon PrecisionDigiTimes AsiaCapacity Change