Nvidia and Amkor Sign $1.5 Billion Chip Packaging Agreement

Amkor Technology announced on Thursday that it has secured a multi-year agreement with Nvidia valued at $1.5 billion to enhance its advanced semiconductor packaging and testing capacity in the US, as the chip sector accelerates the development of AI infrastructure.

Shares of the semiconductor packaging firm surged 17% during after-hours trading.

Here are some specifics about the collaboration:
• As part of the agreement, Nvidia will provide a prepayment to facilitate the growth of Amkor’s advanced packaging operations in the US, notably in Arizona.

• The two companies will collaborate on developing innovative packaging and testing technologies for Nvidia’s AI and accelerated-computing platforms, concentrating on integrating various chip types into one package.

• Amkor is already responsible for advanced packaging for Nvidia’s product lineup, including data center processors, and the expanded agreement aims to introduce new packaging technologies to the market in response to rising AI infrastructure demand.

• In June, Amkor established a 10-year partnership with TSMC, the largest contract chipmaker globally, to advance semiconductor packaging capabilities in the United States.

• Amkor is also partnering with Advanced Micro Devices to package the semiconductor firm’s chips.