Nvidia will provide an advance payment to support Amkor’s US expansion, including new advanced packaging capacity in Arizona, as AI chip demand accelerates.
Amkor Technology has entered into a multi-year agreement with Nvidia valued at $1.5 billion to expand advanced semiconductor packaging and testing capabilities in the United States. The partnership comes as chipmakers and suppliers accelerate investments to support the growing demand for artificial intelligence infrastructure.
Amkor’s shares rose 17 per cent in extended trading following the announcement.
Under the agreement, Nvidia will provide an advance payment to support the expansion of Amkor’s advanced packaging operations in the US, including capacity in Arizona. The companies will also collaborate on the development of packaging and testing technologies for Nvidia’s AI and accelerated-computing platforms.
The partnership will focus on advanced techniques that allow different types of chips to be integrated into a single package. Such technologies are becoming increasingly important as AI processors grow more complex and require greater performance, memory bandwidth and energy efficiency.
Amkor already provides advanced packaging services for Nvidia’s product portfolio, including chips used in data centres. The expanded partnership is expected to accelerate the development and commercialisation of new packaging technologies to meet rising demand for AI computing infrastructure.
The agreement adds to Amkor’s growing network of partnerships in the US semiconductor ecosystem. In June, the company announced a 10-year partnership with Taiwan Semiconductor Manufacturing Company (TSMC) to strengthen advanced semiconductor packaging capabilities in the United States.
Amkor is also working with Advanced Micro Devices (AMD) to package its semiconductor products.
The latest deal highlights the growing strategic importance of advanced packaging in the semiconductor industry. As AI systems require increasingly powerful processors and complex chip architectures, packaging technologies that combine multiple components in a single system are becoming a critical part of the global chip supply chain.
