Nvidia expects its semiconductor testing capacity to double between 2026 and 2027 as demand for artificial intelligence hardware continues to grow. On October 13, 2026, the company signed a prepayment agreement with King Yuan Electronics worth up to $1.4 billion to reserve future testing capacity. In July 2026, Nvidia also prepaid $1.5 billion to Amkor Technology to secure advanced packaging and testing facilities. Meanwhile, Advantest plans to produce 5,000 system-on-chip testers per year by March 2027, compared with 3,000 in mid-2025. These investments signal sustained demand but expose Nvidia to the risk of unused capacity if the market slows before the new facilities come online.
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