NVIDIA signs $1.5B chip packaging deal with Amkor
What's the story
NVIDIA has signed a multi-year agreement worth $1.5 billion with Amkor Technology, a leading semiconductor packaging company. The deal is aimed at expanding advanced semiconductor packaging and testing capacity in the US, amid the growing demand for AI infrastructure. Following the announcement, shares of Amkor surged by 17% in after-hours trading.
Deal details
Prepayment to aid Amkor's expansion
As part of the agreement, NVIDIA will make a prepayment to help Amkor expand its advanced packaging operations in the US, including capacity in Arizona.
The two companies will also work together on developing packaging and testing technologies for NVIDIA's AI and accelerated-computing platforms.
Their main focus will be on integrating different types of chips into a single package.
Current collaboration
Amkor's existing relationship with NVIDIA
Amkor already provides advanced packaging for NVIDIA's product portfolio, which includes data center processors.
The expanded deal is expected to bring new packaging technologies to market as the demand for AI infrastructure continues to grow.
In June, Amkor had also signed a 10-year agreement with TSMC, the world's largest contract chipmaker, to improve semiconductor packaging capabilities in the US.