NVIDIA and Amkor Sign $1.5 Billion Chip Packaging Deal

According to Amkor Technology, the company has entered into a multi-year agreement worth $1.5 billion with NVIDIA to expand advanced semiconductor packaging and testing capacity in the United States. The partnership aims to support the growing demand for artificial intelligence (AI) infrastructure by strengthening domestic semiconductor packaging capabilities.

Following the announcement, Amkor’s shares rose 17% in after-hours trading, reflecting strong investor confidence in the company’s expanded role in the AI semiconductor supply chain.

Under the agreement, NVIDIA will provide an upfront payment to support Amkor’s expansion of advanced packaging operations in the U.S., including capacity growth at its Arizona facility. The two companies will collaborate on the development of advanced packaging and testing technologies for NVIDIA’s AI and accelerated computing platforms, with a focus on integrating multiple types of chips into a single package.

Amkor already provides advanced packaging solutions for NVIDIA’s product portfolio, including data center processors. The expanded partnership is expected to accelerate the commercialization of next-generation packaging technologies as demand for AI computing infrastructure continues to rise.

In June, Amkor signed a 10-year strategic partnership with TSMC, the world’s largest semiconductor foundry, to further enhance its semiconductor packaging capabilities in the U.S. The company has also partnered with AMD to provide packaging services for its semiconductor products.