Amkor Technology has signed a $1.5-billion multi-year agreement with Nvidia to expand advanced semiconductor packaging and testing capacity in the US.
Nvidia will make a prepayment to support the expansion, including new capacity in Arizona, as AI infrastructure demand accelerates.
The deal builds on Amkor's existing partnerships with Nvidia, TSMC and AMD to strengthen the US semiconductor supply chain.
Nvidia, Amkor Ink $1.5-Billion Deal to Expand US Chip Packaging Capacity
Nvidia will make a prepayment under the multi-year agreement to help Amkor expand advanced semiconductor packaging and testing capacity in the US as demand for AI infrastructure continues to grow
Summary
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Amkor Technology has signed a $1.5-billion multi-year agreement with Nvidia to expand advanced semiconductor packaging and testing capacity in the United States (US), as demand for artificial intelligence (AI) infrastructure continues to surge, according to a Reuters report.
Under the agreement, Nvidia will make a prepayment to support the expansion of Amkor's advanced packaging operations in the US, including additional capacity at its Arizona facility. Following the announcement, Amkor shares rose 17% in extended trading.
The partnership comes as semiconductor companies ramp up investments across the AI supply chain to meet growing demand for high-performance chips used in data centres and accelerated computing.
Deal to Expand US Packaging Capacity
As part of the agreement, the two companies will jointly develop advanced packaging and testing technologies for Nvidia's AI and accelerated computing platforms, according to the report.
The collaboration will focus on integrating different types of semiconductor chips into a single package. Advanced packaging has become increasingly important for AI processors because it helps improve computing performance, efficiency and overall system capability.
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The news agency reported that the expansion will strengthen Amkor's US operations while supporting Nvidia's efforts to scale AI infrastructure and meet rising demand for advanced computing solutions.
Builds on Existing Partnerships
Amkor already provides advanced semiconductor packaging services for Nvidia's product portfolio, including data centre processors. The expanded agreement is expected to help bring newer packaging technologies to market as AI adoption continues to accelerate, Reuters reported.
The company has also been expanding its partnerships across the semiconductor industry. In June, Amkor signed a 10-year partnership with Taiwan Semiconductor Manufacturing Co. (TSMC) to enhance semiconductor packaging capabilities in the US.
In addition, Amkor is working with Advanced Micro Devices (AMD) to package the chipmaker's processors, further strengthening its role in the growing AI semiconductor ecosystem. The latest agreement with Nvidia adds to Amkor's efforts to expand its presence in advanced chip packaging as global demand for AI infrastructure continues to rise.
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