Amkor Technology said it has signed a multi-year $1.5 billion agreement with NVIDIA to expand advanced semiconductor packaging and test capacity in the United States, giving NVIDIA another anchor supplier for the AI-accelerator packages that sit at the heart of its data-center business.
What the deal covers
Under the agreement announced Thursday, NVIDIA will make a prepayment to support the expansion of Amkor’s US advanced packaging operations, including capacity at the company’s new Peoria, Arizona campus. The two companies will jointly develop packaging and test technologies for NVIDIA’s AI and accelerated-computing platforms, focusing on stitching together different types of chips — logic, HBM memory and interconnect — in a single high-density module. Amkor already supplies advanced packaging for NVIDIA’s data-center processors, and the expanded deal is designed to bring next-generation packaging technologies online as AI infrastructure demand accelerates. Shares of Amkor jumped roughly 17% in extended trading on the news.
Arizona becomes an OSAT hub
The pact leans on Amkor’s new US Peoria, Arizona advanced packaging and test facility, which is being built with roughly $2 billion of investment and up to $400 million in CHIPS Act support. In June, Amkor signed a 10-year partnership with TSMC to bring turnkey advanced packaging and test services to the same Arizona site — a stack that would let TSMC-made die be packaged and tested onshore without shipping back to Taiwan. Amkor is also packaging AMD’s AI chips, and its S-Connect bridge-die interposer and S-SWIFT fan-out lines are pitched squarely at the chiplet-plus-HBM designs powering modern accelerators.
Why NVIDIA is prepaying capacity
The prepayment structure echoes NVIDIA’s recent playbook of writing large checks to lock in scarce manufacturing supply, mirroring the multi-year memory pact it inked with SK hynix and the ecosystem it is building around its Cosmos physical-AI platform. With hyperscalers such as OpenAI, Meta and Anthropic all preparing multi-gigawatt AI data centers, advanced packaging — not raw wafer capacity — has become the tightest link in the accelerator supply chain, and locking in Amkor keeps NVIDIA at the front of the queue.
Reporting based on coverage from Reuters, The Star and Amkor investor communications.