Nvidia Funding Billions to Expand SPIL CoWoS Packaging Capacity

• Dispatched: Nov 7, 2026 · 17:38 ET (22:38 UTC)

Magnitude: Medium news (Magnificent Seven / AI chips and memory: categories 2 and 3)

Originally reported: 00:51 ET, November 6, 2026)

In one sentence: Reuters reported on November 6 that Nvidia is providing billions of dollars in financing to help Siliconware Precision Industries (SPIL), a unit of Taiwan's ASE Technology, expand CoWoS advanced packaging capacity, with the funding going toward new factory space and equipment; the scale of the support had not previously been reported.

Source links:

• Reuters feature (via Global Banking & Finance)

• Reuters feature (via The Hindu BusinessLine)

• Cross-check Verified content:

• Nvidia is providing billions of dollars in financing to help ASE's advanced packaging subsidiary SPIL (Siliconware Precision Industries) expand CoWoS (Chip-on-Wafer-on-Substrate) packaging capacity, with the funding supporting new factory space and equipment procurement.

• Reuters said the scale of the support had not previously been reported.

• Background: advanced packaging has become a key bottleneck for AI chip shipments. Research firm Yole Group expects capital spending on advanced packaging to approach $28 billion in 2026, with revenue overtaking traditional packaging for the first time; TSMC dominates CoWoS technology and its capacity is stretched thin, pushing Nvidia and other customers to fund external packaging capacity.

• ASE has raised its 2026 capital spending budget to $11.5 billion from $10.5 billion, and expects revenue from full-process advanced packaging to more than triple, from $300 million this year to over $1 billion in 2027; ASE's CFO said on the October 29 earnings call that space remained the main bottleneck and that demand next year could substantially exceed available supply.

• Nvidia has previously announced a $1.1 billion advance to chip-testing firm KYEC to reserve testing capacity, and a multibillion-dollar advance to Japanese materials supplier Ibiden.

Why it matters: Nvidia paying directly to expand a packaging supplier's capacity shows that the CoWoS bottleneck is constraining AI chip shipments; this is another supplier-capacity-locking move by Nvidia after its October 21 supply-chain expansion plan, and it is directly relevant to the supply-chain setup ahead of Nvidia's November 17 earnings report.

Sourcing note ⚠ single source, unverified:

This report rests on a single anonymous industry executive cited by Reuters. Nvidia did not respond to a request for comment, and ASE said it does not comment on market rumors involving its customers; the amount, terms, timing and added capacity of the financing were not disclosed, and neither company has confirmed it. No further reliable details are available.