Nvidia signs $1.5 billion deal with Amkor for chip packaging

Technology giant Nvidia has agreed to utilize Amkor Technology's services for chip packaging in the United States, in a deal valued at approximately $1.5 billion.

The agreement, announced Tuesday, represents a significant expansion of Nvidia's supply chain as it strives to meet the escalating demand for artificial intelligence chips. Amkor ranks among the world's largest third-party providers of semiconductor packaging and testing services.

The transaction is expected to enhance Nvidia's capability to manage its chip manufacturing processes more effectively. The company has recently encountered challenges in balancing supply and demand due to the rapid growth in the AI market.

Industry analysts suggest the deal could also contribute to the growth of domestic production capabilities within the United States.