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Nvidia, Amkor agree on $1.5 billion chip packaging deal
The multi-year pact includes a prepayment from Nvidia to expand Amkor’s advanced packaging and test capacity in the U.S., including in Arizona.
Amkor Technology said it has entered a multi-year agreement with Nvidia worth $1.5 billion to expand advanced semiconductor packaging and test capacity in the United States, as the chip industry builds out AI infrastructure, Reuters reports.
Under the deal, Nvidia will make a prepayment to support the expansion of Amkor’s U.S. advanced packaging operations, including capacity in Arizona.
The companies will also 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 agreement is intended to bring new packaging technologies to market as AI infrastructure demand grows; the company previously entered a 10-year partnership with TSMC to enhance U.S. packaging capabilities and is also working with Advanced Micro Devices on chip packaging.