Nvidia and Amkor ink $1.5B deal to expand US chip packaging for AI

Nvidia and Amkor Technology have forged a $1.5 billion multi-year agreement to expand advanced semiconductor packaging and test capacity in the United States, accelerating the buildout of AI infrastructure. Under the deal, Nvidia will make a prepayment to support the expansion of Amkor’s US operations, including capacity at its Arizona facility. The two companies will jointly develop packaging and testing technologies tailored for Nvidia’s AI and accelerated-computing platforms, with a focus on combining different types of chips—such as logic, memory, and custom accelerators—into a single package. Amkor already supplies advanced packaging for Nvidia’s data center processors, and this expanded partnership aims to commercialize new packaging technologies as AI demand surges.

Amkor’s shares jumped 17% in extended trading following the announcement. The company has been aggressively strengthening its US packaging capabilities: in June, it entered a 10-year partnership with TSMC, the world’s largest contract chipmaker, to enhance semiconductor packaging. Amkor is also working with Advanced Micro Devices (AMD) to package its chips. The Nvidia deal marks a strategic bet on domestic chip packaging, an area where the US has lagged behind Asia, and positions Amkor as a critical node in Nvidia’s supply chain for next-generation AI hardware.