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Nvidia has signed a multi-year, $1.5 billion agreement with semiconductor packaging company Amkor Technology to expand advanced chip packaging and testing capacity in the United States, as the AI boom continues to drive demand across the semiconductor supply chain.
Under the agreement, Nvidia will make a prepayment to support the expansion of Amkor's advanced packaging operations, including its facilities in Arizona. The investment is aimed at securing capacity for next-generation AI and accelerated computing processors.
The companies will also collaborate on developing advanced packaging and testing technologies designed to integrate multiple chip components into a single package, an increasingly important requirement for high-performance AI processors.
The announcement underscores the growing strategic importance of advanced semiconductor packaging, which has emerged as one of the industry's biggest supply chain constraints as demand for AI chips outpaces manufacturing capacity.
Amkor already provides advanced packaging services for Nvidia's data centre processors, and the expanded partnership is expected to accelerate the deployment of new packaging technologies for future AI platforms.
The agreement follows Amkor's 10-year partnership with Taiwan Semiconductor Manufacturing Co. (TSMC), announced in June, to strengthen advanced packaging capabilities in the United States. The company also provides chip packaging services for AMD.
Shares of Amkor rose about 17% in extended trading following the announcement, reflecting investor optimism over the long-term partnership.
The deal comes as semiconductor companies invest heavily in expanding advanced packaging capacity, which has become as critical as chip fabrication itself in meeting surging global demand for AI infrastructure.
Under the agreement, Nvidia will make a prepayment to support the expansion of Amkor's advanced packaging operations, including its facilities in Arizona. The investment is aimed at securing capacity for next-generation AI and accelerated computing processors.
The companies will also collaborate on developing advanced packaging and testing technologies designed to integrate multiple chip components into a single package, an increasingly important requirement for high-performance AI processors.
The announcement underscores the growing strategic importance of advanced semiconductor packaging, which has emerged as one of the industry's biggest supply chain constraints as demand for AI chips outpaces manufacturing capacity.
Amkor already provides advanced packaging services for Nvidia's data centre processors, and the expanded partnership is expected to accelerate the deployment of new packaging technologies for future AI platforms.
The agreement follows Amkor's 10-year partnership with Taiwan Semiconductor Manufacturing Co. (TSMC), announced in June, to strengthen advanced packaging capabilities in the United States. The company also provides chip packaging services for AMD.
Shares of Amkor rose about 17% in extended trading following the announcement, reflecting investor optimism over the long-term partnership.
The deal comes as semiconductor companies invest heavily in expanding advanced packaging capacity, which has become as critical as chip fabrication itself in meeting surging global demand for AI infrastructure.
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