Nvidia, Amkor strike $1.5 billion chip packaging deal

Amkor Technology said on Thursday it had entered a multi-year agreement with Nvidia worth $1.5 billion to expand advanced semiconductor packaging and test capacity in the US, as the chip industry ‌races ⁠to build ⁠out AI infrastructure.

Shares of the semiconductor packaging ​company jumped 17% in extended trading.

Under the agreement, Nvidia will make a prepayment to ​support the expansion of Amkor's ⁠US advanced ‌packaging operations, including capacity ​in ​Arizona.


The companies will jointly develop ⁠packaging and testing technologies for Nvidia's ​AI and accelerated-computing platforms, focusing on ​combining different types of chips in a single package.

Amkor already supplies advanced packaging for Nvidia's product portfolio, including data center processors, and the expanded ‌deal aims to bring new packaging technologies to market as AI infrastructure demand grows.

In ⁠June, Amkor entered a 10-year partnership with TSMC, the world's largest contract chipmaker, to enhance ​semiconductor packaging capabilities in the United States.

Amkor is also working with Advanced Micro Devices to package the semiconductor company's chips.