Nvidia doubles production capacity for late 2026 amid AI demand surge

Nvidia Doubles Production Capacity for Second Half of 2026 as AI Demand Intensifies

Nvidia CEO Jensen Huang told partners and reporters that the company has already doubled its production capacity for the second half of 2026, while urging Taiwan’s supply chain to brace for even larger volumes in 2027.

Huang’s Parting Message From Taiwan

Huang made the comments during a whirlwind two-week visit to Taiwan that included the GTC Taipei keynote on June 1 and meetings with executives across the island’s semiconductor ecosystem. According to a report from Gate.com, Huang stated that Nvidia already partners with approximately 120 Taiwanese suppliers and has increased second-half 2026 supply volumes to double prior levels. He said the Taiwan supply chain must prepare for second-half 2027 demand that could double the current year’s output.gate

Earlier in his visit, Huang told reporters after a dinner with Quanta Computer executives that “the main topic of discussion today was expanding production capacity. The second half of the year will be very busy, especially with new products like Grace Blackwell and the next-generation AI accelerator, Vera Rubin”. He emphasized that “the second half of this year will be the largest ever for Nvidia and Taiwan”.ajupress

Supply Chain Scrambles to Keep Pace

Reuters reported that Huang declared the company possesses sufficient inventory to support robust growth in both CPUs and GPUs as it capitalizes on the AI surge. Yahoo Finance noted that Huang indicated the second half of 2026 is likely to be “very busy” for Nvidia’s manufacturing partners and that the company plans to double wafer capacity.yahoo

The capacity expansion comes against a backdrop of extraordinary demand. At GTC in San Jose in March, Huang projected at least $1 trillion in revenue from Nvidia’s Blackwell and Vera Rubin chip platforms through 2027, more than doubling the company’s prior $500 billion demand estimate through 2026.facebook

Taiwan at the Center

Nvidia’s annual spending in Taiwan has grown from $10 billion to $15 billion five years ago to approximately $150 billion now, according to the Taipei Times. Huang described the island as “the epicenter of the AI revolution”. SK hynix Chairman Chey Tae-won separately announced plans to double wafer production capacity within five years, while TSMC continues to expand advanced packaging to meet Nvidia’s needs.247wallst

Huang departed Taiwan this week and is expected to visit South Korea to meet additional partners and prepare for what he called an “incredibly busy” 2027.instagram