Amkor Technology and Nvidia Sign $1.5 Billion Deal
Amkor Technology announced that it has signed a multi-year agreement worth $1.5 billion with Nvidia to significantly expand advanced semiconductor packaging and testing capacity in the United States. The partnership comes as global demand for artificial intelligence (AI) infrastructure continues to surge, driving chipmakers to strengthen domestic manufacturing and supply chain capabilities.
Following the announcement, Amkor Technology's shares climbed 17 percent in extended trading, reflecting investor optimism over the long-term strategic collaboration.
As part of the agreement, Nvidia will provide a substantial prepayment to support the expansion of Amkor's advanced packaging operations in the U.S., including increased capacity at its Arizona facilities. The investment is expected to accelerate the development of next-generation packaging technologies required for high-performance AI processors.
The two companies will also work together to develop advanced semiconductor packaging and testing technologies for Nvidia's AI and accelerated computing platforms. Their collaboration will focus on heterogeneous integration, a technique that combines different types of semiconductor chips within a single package to improve computing performance, efficiency, and power management.
Amkor has been a long-standing packaging partner for Nvidia, providing advanced packaging solutions for several of the company's data center processors. The expanded agreement aims to introduce more sophisticated packaging technologies that can support the rapidly increasing demand for AI chips used in cloud computing, generative AI, and large-scale data centers.
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The latest deal further strengthens Amkor's growing presence in the U.S. semiconductor ecosystem.
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In June, the company entered a 10-year partnership with TSMC to enhance advanced semiconductor packaging capabilities in the United States. Amkor is also collaborating with Advanced Micro Devices (AMD) to package its semiconductor products.
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The agreement highlights the industry's continued investment in strengthening domestic semiconductor manufacturing and advanced packaging, which have become critical components in supporting the next generation of AI computing infrastructure.