Days after major Nvidia suppliers warned of slowdown in AI spending, another NVDA partner considers accelerating expansion to meet growing demand – Broadcom (NASDAQ: AVGO ), Advanced Micro Devices (NASDAQ: AVGO ) Code: AMD)

As the demand for AI chip packaging substrates surges, ibden co., ltd. important suppliers of NVIDIA Corporation. NVDAis evaluating the possibility of accelerating capacity expansion. The move is to keep up with the growing demand from the artificial intelligence industry.

what happened: CEO Kawashima Koji Ibiden revealed that demand for substrates for artificial intelligence remains strong, with all available inventory being snapped up by customers. This trend is expected to continue into next year. Currently, Ibiden is building a new substrate factory in Gifu, Japan, which is expected to be operational at 25% capacity by the end of 2025, and eventually reach 50% by March 2026.

See also: OpenAI’s for-profit transition, Trump’s AI advisers, and Google’s Code Red: This Week in Artificial Intelligence

Still, Kawashima noted that even this planned capacity may not meet requirements, prompting discussions about when to activate the remaining 50% of capacity. Ibiden’s clients include industry giants such as Intel Corporation international trade center, AMD AMD, Samsung Electronics Corporation SSNLFand Taiwan Semiconductor Manufacturing Company TSMalongside NVIDIA.

Despite the challenges, Kawashima expressed optimism about Intel’s recovery and emphasized the importance of cooperation between the two parties. Meanwhile, Toyo Securities analysts stressed that Taiwanese competitors are eyeing the AI ​​substrate market, but Ibiden’s stronghold remains intact Hideki Yasuda.

why it’s important: Ibiden’s expansion is likely to accelerate, bringing with it broader industry concerns and opportunities. Most recently, Doug Lefever, CEO Advant testAnother major supplier to Nvidia warned that artificial intelligence spending by major U.S. technology companies could slow down, which could disrupt the semiconductor supply chain.

Lefever said a potential recession could be “vicious” due to cyclical market dynamics.

The warning contrasts with the optimism expressed by: Broadcom Corporation AVGO CEO Fu ChenHe predicts a decade-long boom in artificial intelligence chips, driven by investments from tech giants such as Alphabet Inc., Meta Platforms Inc. and ByteDance. As Ibiden considers ramping up production, it grapples with a complex landscape of potential risks and opportunities in artificial intelligence.

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Disclaimer: This content was produced in part with help from Benzinga Neuro, and is reviewed and published by Benzinga editors.

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