Amkor and Nvidia agree on $1.5 billion chip packaging deal
Amkor Technology and Nvidia have signed a strategic, multi-year agreement to develop advanced semiconductor packaging and testing technologies for AI and accelerated computing. The deal is valued at $1.5 billion and will support Nvidia's capacity expansion in the United States.
Amkor Technology, a leading outsourced semiconductor assembly and test (OSAT) provider, has announced a strategic, multi-year partnership with Nvidia. The agreement focuses on developing advanced packaging and testing technologies for next-generation AI and accelerated computing platforms. The deal is reportedly valued at $1.5 billion.
As part of the agreement, Nvidia will provide upfront payments to Amkor to support the expansion of advanced packaging capacity within the United States. This collaboration aims to bolster Nvidia's supply chain resilience and meet the growing demand for high-performance AI chips.
Amkor and Nvidia intend to align their long-term technology roadmaps, focusing on areas such as high-density interconnects and heterogeneous integration. Nvidia highlighted Amkor's global capabilities and its U.S. investments as crucial components for building a robust AI infrastructure.
Amkor has previously supplied advanced packaging solutions for Nvidia's processors, network chipsets, and accelerated computing systems. This agreement will specifically support Amkor's planned capacity expansion in Arizona, complementing its existing manufacturing presence in Asia. Amkor is already constructing a significant advanced packaging park in Arizona, valued at $7 billion and slated for production by 2028.