Amkor Technology said on Thursday it has entered a multi-year pact with Nvidia worth $1.5 billion to expand advanced semiconductor packaging and testing capacity in the United States. The announcement comes as chipmakers and their partners push to scale infrastructure to support artificial intelligence workloads. Following the news, Amkor's stock climbed 17% in extended trading.
Under the terms disclosed, Nvidia will provide a prepayment to back the expansion of Amkor's advanced packaging operations in the U.S., with explicit reference to capacity in Arizona. The companies said they will jointly develop packaging and testing techniques targeted at Nvidia's AI and accelerated-computing platforms.
Central to the collaboration is work on combining different types of chips within a single package - an approach often called heterogeneous integration. The expanded agreement builds on an existing supplier relationship: Amkor already provides advanced packaging services for Nvidia's product lineup, including chips used in data centers.
The companies framed the expanded deal as a way to accelerate the commercialization of new packaging technologies as demand for AI infrastructure grows. The announcement highlights a continued effort by semiconductor firms and assembly- and test providers to boost domestic capacity for advanced packaging and related services.
Context within Amkor's partnerships
The Nvidia arrangement follows other recent moves by Amkor to scale U.S.-based packaging capabilities. In June, Amkor entered a 10-year partnership with Taiwan Semiconductor Manufacturing Company to enhance semiconductor packaging capacity in the United States. Amkor is also engaged in packaging work for Advanced Micro Devices.
Implications for industry participants
- For Nvidia, the deal secures advanced packaging support and an opportunity to co-develop technologies that align with its AI and accelerated-computing roadmap.
- For Amkor, the agreement provides a sizable multi-year commitment and a prepayment intended to finance expansion of U.S. operations, including facilities in Arizona.
- For the broader semiconductor manufacturing and data center sectors, the move signals continued investment in U.S.-based advanced packaging capacity to meet growing AI infrastructure needs.
What the announcement does not disclose
The companies did not provide detailed financial terms beyond the headline $1.5 billion value, nor did they specify the exact amount of Nvidia's prepayment or a timeline for capacity additions and technology rollouts. Those operational and financial details were not included in the announcement.